Chennai (Tamil Nadu), July 29 : The Madras High Court in an order dated April 2, 2024, had quashed proceedings and summons issued by the Enforcement Directorate (ED) against Ocean Lifespaces India Private Limited and its Managing Director, Sylvanus King Peter. The court ruled that the money laundering probe cannot proceed once the underlying "predicate offence" has been quashed by a court of law.
The division bench, comprising Justice M.S. Ramesh and Justice Sunder Mohan, issued the order in response to a writ petition filed by the construction firm and its MD. The petitioners had approached the court seeking to quash a summon dated February 2, 2024, issued under the Prevention of Money Laundering Act (PMLA).
In its judgment, the bench emphasized that the ED's authority to prosecute for money laundering is strictly dependent on the existence of a "scheduled offence."
The court quashed the ED proceedings and the summons issued to the petitioners and directed the agency to return all original documents seized from the petitioners.
Earlier in another order dated February 7, 2024 the Madras High Court had quashed an FIR pending against Sylvanus King Peter and two others after the parties involved reached a mutual compromise.
The petitioners had sought to quash an FIR of 2023, which was being investigated by the Central Crime Branch (CCB-I), Chennai. The court was informed that the parties had decided to settle their issues amicably. The complainant also filed an affidavit confirming the settlement.