CHENNAI: In a setback to DMK MP Jagathrakashagan in his legal battle to stall the Enforcement Directorate (ED) from going ahead with the proceedings for Foreign Exchange Management Act (FEMA) violations, the Madras High Court on Tuesday refused to overturn a single judge’s order, which had turned down the MP’s plea in November 2023.
Dismissing the appeals filed by Jagathrakshagan, Accord Distilleries and Breweries Private Limited, the MP’s son J Sundeep Anand, and daughter J Sri Nisha, the division bench of Justices SM Subramaniam and C Kumarappan confirmed the orders of the single judge who had dismissed the writ petitions challenging the proceedings initiated under FEMA for violation in acquiring a Singapore-based foreign company without permission of the Reserve Bank of India.
The division bench directed the ED to continue with the adjudication proceedings and pass orders expeditiously. Additional Solicitor General (ASG) ARL Sundaresan, assisted by advocate Rajinish Pathyil, appeared for the central agency.
Justice N Seshasayee, in a 2023 order, had dismissed the petitions filed by Jagathrakshagan and his family members challenging the show cause notices issued by ED.
According to the agency, Jagathrakshagan acquired 70 lakh shares of Silver Park International, a Singapore-based company, without RBI approval by paying `32.69 crore in June 2017 and thereby committed violations of Sections 3, 4, 8 and 15 of FEMA and regulations of Foreign Exchange Management Regulations, 2004.
He had transferred 45 lakh shares to his wife Anusuya, 22.5 lakh shares to daughter Sri Nisha, and 2.5 lakh shares to son Sundeep Anand in September 2018.
The ED served them show cause notice in 2022 and a corrigendum was issued in March 2023 to the effect that section 13 (1A) of FEMA be replaced with 13 (2). During a personal hearing on the corrigendum by the ED, they challenged both the show-cause notice and the corrigendum in the writ petition.
Sadiq sent back to judicial custody
Chennai: The Principal Sessions and Special Court for Prevention of Money Laundering Act (PMLA) cases on Tuesday sent back the alleged kingpin in drug smuggling and expelled DMK functionary Jaffer Sadiq to judicial custody till July 29 in the case registered by the Enforcement Directorate (ED). He was produced before the special court as the four-day police custody for interrogation by the agency ended on Tuesday. Subsequently, the court ordered Sadiq’s judicial custody.