Supreme court Seeks Report on Rehearing of Quashed PMLA Case by Madras HC

In a notable legal development, the Supreme Court of India has ordered the Madras High Court to submit a report concerning a case involving a former IPS officer, Jaffar Sait, accused under the Prevention of Money Laundering Act (PMLA). The Supreme Court’s directive follows an allegation that the High Court had reheard the matter and reserved its judgment, despite having quashed the Enforcement Directorate’s (ED) complaint earlier on August 21, 2024.

The Supreme Court, while issuing notice in the matter, stayed all further proceedings before the Madras HC and requested the Registrar General to confirm whether the case was indeed disposed of as claimed by the petitioner.

Context of the Case:

• Senior Advocate Sidharth Luthra, representing the petitioner, brought to the attention of a Supreme Court bench comprising Justice Abhay Oka and Justice Augustine George Masih that the Madras High Court had originally quashed the ED’s complaint on August 21, 2024.
• Despite this, the High Court allegedly reheard the case, raising concerns about procedural irregularities.

Supreme Court’s Directives:

• The Supreme Court has issued notice in the case, returnable on September 30, 2024, and ordered the Registrar General of the Madras High Court to investigate the matter.
• The bench stated: “Learned Senior Counsel for petitioner has pointed out material on record to show that on 21st August 2024, CrlOP no. 001772 of 2024 was allowed by the High Court. However, later on, it was reheard, and judgment is reserved…”
• The Supreme Court has further instructed that no judgment be pronounced in the case until the report is submitted.

Background of the Case:

• The case involves former IPS officer Jaffar Sait, who is accused of illegally acquiring a plot from the Tamil Nadu Housing Board in 2011. He had earlier been involved in a corruption case filed by the Directorate of Vigilance and Anti-Corruption (DVAC), which was quashed by the Madras High Court in 2019.
• Following this, Sait filed a petition to quash the Enforcement Directorate’s complaint related to the PMLA case.
• The Madras High Court’s division bench of Justice SM Subramaniam and Justice V Sivagnanam is hearing the quashing petition.

Supreme Court’s Intervention:

• The Supreme Court’s decision to seek a report stems from the petitioner’s assertion that the High Court had initially quashed the ED’s complaint but later reheard the case. The Supreme Court’s bench remarked on the gravity of the situation, staying all further proceedings until a proper examination of the case record is completed.
• The Registrar General of the Madras High Court is expected to provide a detailed, sealed report verifying whether the petition had been disposed of on August 21, 2024, as the petitioner claims. The next hearing before the Supreme Court is scheduled for September 30, 2024.

Click to read: MS Jaffar Sait v. Directorate of Enforcement, Diary No. 39548/2024