Supreme Court stays Madras High Court order on re-hearing quashed PMLA case

The Supreme Court on Friday stayed the order passed by the Madras High Court by which it had revoked its earlier decision to quash a money laundering case against retired police officer MS Jaffar Sait [MS Jaffar Sait v. Directorate of Enforcement].

A Bench of Justices Abhay S Oka and Augustine George Masih said that it will examine how the High Court passed its order restoring the case after it had initially quashed the case.

"Several issues have to be looked into including the manner in which High Court has passed orders. We direct that orders based on Enforcement Case Information Report and Criminal OP have to be stayed," the Court directed.

We are also on the issue that how orders are passed after case/ECIR has been quashed, the Court remarked while asking the counsel involved to do research on similar judgments on the issue.

The matter will be heard again on November 22.

The money laundering case was filed by the Enforcement Directorate (ED) against Sait, a retired Indian Police Service (IPS) officer.

The case against Sait involves allegations that he illegally acquired a Tamil Nadu Housing Board plot of land in 2011. A corruption case registered in the matter against Sait by the Directorate of Vigilance and Anti-Corruption (DVAC) was quashed by the Madras High Court in 2019.

Sait then moved the High Court seeking the quashing of the ED's complaint in the matter as well.

On August 21, a Bench of Justices SM Subramaniam and V Sivagnanam quashed the ED's complaint in the matter against Sait after noting that the predicate case (DVAC case) had already been quashed.

Two days later, on August 23, the same Bench recalled its August 21 order and decided to re-hear the matter on merits.

This was after another Bench of Justices Subramaniam and R Sakthivel questioned the ED on money laundering cases fizzling out before reaching their logical conclusion, owing to the quashing of the predicate offence FIRs.

A heated exchange took place in the High Court over the recall order.

Sait then moved the Supreme Court against the same.

When the appeal was heard on September 6, the top court had directed the Registrar General of the Madras High Court to submit a detailed report in a sealed cover regarding the handling of the case.

During the hearing on Friday, the apex court was informed by the ED that the predicate offence continue to survive against another accused.

"It does not survive against me," said Senior Advocate Sidharth Luthra appearing for Sait.

The Court then said that the issues require deeper examination and stayed the money laundering proceedings against Sait.

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