BENGALURU: The Karnataka High Court dismissed petitions filed by JSW Steel and its deputy general manager questioning the proceedings by the Enforcement Directorate under Section 4 of the Prevention of Money Laundering Act. Justice M Nagaprasanna dismissed the two separate petitions filed by the company and its official Pravin John Sequeira, challenging the order passed by the special court on April 11, 2022, taking cognisance of the offences and issuing summonses to them.
“The order taking cognisance by the Special Judge does bear application of mind and the fact the report is filed by a public servant cannot be ignored, as filing of a false report or a wrong report, the public servant becomes accountable for the same and liable for action to be taken against him. Wherefore, finding the order taking cognisance being in consonance with the principles enunciated by the apex court,” the HC said.
The petitioner and Obulapuram Mining Company entered into an agreement in 2009 for the supply of iron ore and the petitioner claims to have paid Rs 130 crore as advance through bank transfer. Contending that the proceedings against the petitioners are illegal, saying the alleged offences do not come under PMLA as on the date of registration of crime, the petitioners questioned the registration of crime.