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HC dismisses Subiksha promoter's plea against ED case

Press Trust of India  |  Chennai 

The Thursday dismissed a revision petition filed by the promoter of retail store chain group against a lower court order taking cognisance of a complaint filed by the ED in connection with a Rs 77 against him.

Justice R M T held supplementary complaint can be filed based on further investigation and leave and liberty sought for in the present complaint by the cannot be termed as illegal and incomplete as claimed by petitioner R

Subramanian, promoter and of Ms Trading Services Limited, had sought to set aside the April 20 last order of here taking cognisance on the complaint under the Prevention of Act (PMLA) filed by the ED.

The directorate had arrested on February 27 on charges of fraudulently diverting term loan and cash credit funds amounting to Rs 77 crore he had obtained from the for establishing the chain of stores.

The entire loan amount was at default and during the probe it was noticed that in the name of 'Subhiksha' chain of stores, had also availed about Rs 790 crore from a consortium of bankers and had not repaid it, the ED had said.

The agency had taken over the probe in the case based on a CBI FIR and charge sheet.

It had attached the proceeds of for the value of only Rs 9.47 crores so far.

The investigation under PMLA revealed the petitioner had committed offences of under Section 3 punishable under Section 4 of the PML Act.

Justice Raman observed Section 173(8) of the Criminal Procedure Code provided for further investigation and there were no contrary provisions in the PMLA and hence, further investigation can be carried out by the ED even under the act.

"I do not find any illegality or irregularity in the cognisance taken by the learned Principal Sessions Judge, City Civil Court, designated Court under PML Act, Chennai," he said in his order dismissing the petition.

The also rejected the petitioner's contentions against the attachment of property of his wife and others, saying its probate value can be gone into only at the time of trial.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 21:10 IST