CHENNAI: The Madras High Court has been informed that ED initiated proceedings to declare AMMK founder TTV Dhinakaran as insolvent in connection with the case on foreign exchange regulations act violations.
Counsel for Dhinakaran made the submission when a 2020 petition filed by S Parthiban of Chennai seeking orders to ED to take action for recovering the penalty amount of Rs 31 crore came up for hearing before the first bench of Chief Justice SV Gangapurwala and Justice PD Audikesavalu.
The bench recorded the submission of counsel saying that proceedings have been initiated by ED to declare him as ‘insolvent’ and the proceedings are pending. The petitioner had stated that ED officials were not taking any action for recovering the penalty amount imposed in 1998 from Dhinakaran despite knowing well that he owned several properties.
Dhinkaran’s appeal before the foreign exchange regulations appellate board was dismissed while confirming the penalty. The petitions against the penalty were dismissed by the High Court and the Supreme Court also, he recalled. The petitioner further stated that non-recovery of the penalty is a huge loss of revenue for the government.