The Madurai Bench of the Madras High Court has refused to quash multiple criminal proceedings and money laundering cases arising out of the alleged illegal granite mining scam.
The bench of Justice N. Anand Venkatesh and Justice K. Ramakrishnan has observed that the extensive evidence collected by the prosecution, including eyewitness accounts and documentary material, disclosed a strong prima facie case warranting a full-fledged trial rather than interference under its inherent jurisdiction.
The prosecution alleged that the accused were involved in large-scale illegal granite quarrying and related criminal activities over several years. The allegations include illegal extraction of minerals, destruction of public property, forgery of official records, cheating the Government exchequer, criminal conspiracy and laundering of the proceeds of crime through acquisition of immovable properties.
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According to the prosecution, the value of the alleged proceeds of crime involved in the money laundering cases is approximately ₹7,237 crore. Separate prosecutions have been initiated under the Prevention of Money Laundering Act, 2002 (PMLA) as well as under various provisions of the Indian Penal Code, the Mines and Minerals (Development and Regulation) Act-related offences, the Tamil Nadu Public Property (Prevention of Damage and Loss) Act and the Explosive Substances Act.
The principal argument advanced by the petitioners was based on the report of a High-Level Committee constituted pursuant to directions of the Supreme Court.
Senior counsel appearing for the petitioners contended that the Committee’s report dated March 31, 2021 demonstrated that no offence was made out in relation to the allegations of illegal mining and that the prosecution’s earlier valuation methodology had become unsustainable. The petitioners argued that the High Court should take judicial notice of the report and quash all pending criminal proceedings on that basis.
Rejecting the submissions, the High Court reiterated the settled legal principle that while exercising powers under Section 482 of the Code of Criminal Procedure, the Court cannot undertake a detailed appreciation of disputed evidence or conduct a mini-trial.
The Bench observed that the investigation had yielded substantial material connecting the accused with the alleged offences and that disputed factual issues could only be adjudicated during the course of trial after witnesses are examined and cross-examined.
The Court noted that the investigation had produced numerous eyewitness statements specifically describing the role played by the accused at various stages of the alleged conspiracy.
It further observed that criminal conspiracy does not require every conspirator to participate in each individual act. Once prima facie participation in the conspiracy is shown, liability may arise for acts committed in furtherance of the common design.
According to the Bench, the prosecution materials presently available disclose sufficient grounds to proceed with the criminal trial.
The High Court also affirmed the orders of the trial courts rejecting discharge petitions filed by various accused.
After independently examining the investigation records, the Bench held that the trial courts had correctly found sufficient grounds to frame charges and proceed with the prosecutions. It found no perversity or legal infirmity in those orders warranting interference in revision.
The judgment also covers challenges to Enforcement Directorate prosecutions initiated under the Prevention of Money Laundering Act based on ECIRs registered in connection with the alleged illegal mining offences.
The Court declined to interfere with the pending PMLA complaints as well, holding that the allegations regarding laundering of proceeds of crime likewise require adjudication through a full-fledged trial.
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