Appellate Tribunal order on Pothys stayed by Madras High Court

A vacation bench of Madras High Court has stayed the operation of an interim order passed by the Appellate Tribunal, under the PMLA, in New Delhi, favouring textile baron ‘Pothys’.

Published: 20th May 2017 02:53 AM  |   Last Updated: 20th May 2017 02:53 AM   |  A+A-

Express News Service

CHENNAI: A vacation bench of Madras High Court has stayed the operation of an interim order passed by the Appellate Tribunal, under the Prevention of Money Laundering Act (PMLA), in New Delhi, favouring textile baron ‘Pothys’.

The bench of Justices R Mahadevan and M Govindaraj granted the injunction on a batch of appeals from the Enforcement Directorate, on May 18.

The matter relates to purchase of a property by Pothys for construction of a textile show room in Kanchipuram in February 2016, from one Dhanalakshmi Sridhar for Rs 5,30,74,500. Her father, Sridhar Dhanapal, was facing various criminal proceedings, under the PMLA as well. The property in question was attached by the PMLA authorities and the provisional attachment order passed by the ED was also confirmed by the Adjudicating Authority..

Challenging this, S Ramesh Pothy and his brothers moved the Appellate Tribunal, contending that if the property was attached and the ED took possession of it, they might face huge monetary loss besides losing their reputation. And the Tribunal on February 21 last directed Pothys to deposit 50 per cent of the sale amount (Rs 5.30 crore) to the account of the ED Deputy Director in Chennai and use the property for passage alone.

Challenging this, ED Deputy Director N Ananthie moved Madras HC, contending that the Tribunal had failed to consider that the purchaser of the property, instead of making payment to Dhanalakshmi remitted the sale consideration from Pothys into the bank account of Sridhar’s wife Kumari residing in Dubai and who is not a party. This would clearly prove that the transaction involved money laundering and sought the HC to quash the Tribunal’s interim order.

Stay up to date on all the latest Chennai news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.