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PMLA complaint against S DilliRaj is misconceived and accordingly quashed: Madras High Court

Division Bench of the Madras High court quashed the PMLA complaint No.70 of 2016 filed by Enforcement Directorate against S Dilli Raj with regard to default of bank borrowings by First Leasing (FLCI).

PMLA complaint against S DilliRaj is misconceived and accordingly Quashed Madras High Court
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Chennai, First Published Apr 14, 2021, 4:24 PM IST
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Division Bench of the Madras High court quashed the PMLA complaint No.70 of 2016 filed by Enforcement Directorate against S Dilli Raj with regard to the default of bank borrowings by First Leasing (FLCI) 

As per the High Court’s order, S DilliRaj left the services of First Leasing (FLCI) in 2007 and FLCI was making due repayments of its bank borrowings till September 2013.
 
The speaking order records that S DilliRaj is not a beneficiary of Proceeds of Crime and even as per ED he received only Salary, Bonus & perks as an employee. 

Observing that “the salaries drawn by S DilliRaj can by no stretch of imagination be construed as Proceeds of Crime”, the High Court bench held that it is not persuaded to agree with the Enforcement Directorate's claim that that the Salaries & Perquisites that were paid to S DilliRaj while he was in employment with FLCI would amount to ‘proceeds of crime’ and any property purchased with that would stand tainted.
 
Terming the impugned prosecution of Dilli Raj under PML Act as misconceived, the High Court quashed the criminal complaint.

The primary charge against FLCI was that its accounts were fudged. S DilliRaj neither prepared nor signed any financial statement like a Balance sheet at any time during his stint. Also, he was never a Director/Promoter/Shareholder /KMP of First Leasing. 

Quash is the highest level of endorsement for one’s innocence. It is superior to acquittal which follows trial with verification of all evidence and examination of all Witnesses. Discharge, another form of relief is also granted post-filing of the Charge sheet. 

The criminal complaint against S DilliRaj is quashed even prior to the framing of charges.

After leaving First Leasing, S DilliRaj joined SKS Microfinance in January 2008 and prepared SKS Microfinance for its IPO which was subscribed 13.6 times. He played a key role in the team that turned around SKS Microfinance post the AP MFI crisis and repositioned the company into Bharat Financial Inclusion Ltd (BFIL) which was later merged with IndusInd Bank.
 
S DilliRaj is the founder of RajGuru Advisors. Assisting companies in ‘IPO preparedness’ is a key service offered by RajGuru Advisors.

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