No prosecution against Co. under PMLA as entrusted person opened fake bank a/c

  • Blog|News|FEMA & Banking|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 19 March, 2022

illicit funds; PMLA

Case Details: VMT Spinning Mills India (P.) Ltd. v. Assistant Director, Directorate of Enforcement,Chennai - [2022] 136 89 (Madras)

Judiciary and Counsel Details

    • P.N. Prakash and MS. R.N. Manjula, JJ. 
    • B. Kumar, Sr. Counsel and I. Abrar Mohamed Abdullah for the Petitioner. 
    • Ms. G. Hema, Spl. Public Prosecutor for the Respondent.

Facts of the Case

In the instant case, where one ‘S’, to whom affairs of petitioner ‘VMT Mills’ were entrusted in good faith by its owners to help it to come out of its financial crisis, had opened a fake bank account in name of said Mill with forged documents and without knowledge of true owner of mill and had parked funds that were generated by him by indulging in cheating.

High Court Held

In that account, it was held that ‘VMT Mills’ could not be prosecuted for offence of money laundering under sections 3 and 4 and accordingly, criminal petition for quashing of prosecution was to be allowed.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied