The Madras High Court has held that the Enforcement Directorate (ED) is not required to register a case under the Prevention of Money Laundering Act (PMLA) solely because a disproportionate assets (DA) case has been filed.
The observation came while hearing petitions filed by DMK MP R. Girirajan, who sought directions to the ED to register PMLA cases citing DA cases against several former AIADMK ministers and others.
A Division Bench comprising Chief Justice S.A. Dharmadhikari and Justice G. Arul Murugan dismissed the petitions. The court said the ED must first be satisfied that there is material indicating money laundering.
The bench added that the decision on whether to initiate proceedings under the PMLA should be taken by the ED itself, based on the evidence available, and not as an automatic consequence of a DA case being registered.
