DHARMARAJ RASALAM Vs. ASSISTANT DIRECTOR, DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) The petitioner is the Bishop and Moderator of the Church of South India (CSI). He is also the Chairman of all educational institutions under the South Kerala Diocese, including the Dr. Somervell Memorial CSI Medical College. In 2019, parents of aspiring medical students filed criminal complaints, alleging that large sums of money was collected from them, by promising admissions to MBBS and PG courses in the Medical College. After collecting the amounts, neither was the promised admissions provided nor the amounts refunded. The Admission Supervisory Committee for Medical Education in Kerala enquired into the allegations and recommended the Government to take appropriate steps to ensure refund of the amounts collected from the complainants. Acting on the recommendation, the Government ordered Crime Branch investigation into the FIRs registered at the Vellarada Police Station based on the complaints submitted by the deceived parents. Thereupon, the Crime Branch registered multiple cases under various penal provisions, including Ss. 120-B and 420 of the IPC, against the petitioner and others. While the Crime Branch investigation was in progress, the Enforcement Directorate/1st respondent recorded ECIR/KCZO/11/2020 dtd. 12/3/2020 and started investigation under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) against the following persons; (i) Dr. Bennet Abraham, Director of Dr. SMCSI Medical College and Hospital (ii) Rev. A. Dharmaraj Rasalam, Chairman of Dr. SMCSI Medical College and Hospital (iii) Sri. P. Thankaraj, Former Comptroller of Dr SMCSI Medical College and Hospital and (iv) Dr. P. Madhusoodanan, Former Principal of Dr SMCSI Medical College and Hospital and other administrative officials.

(2.) Adv. Shinu J. Pillai, learned Counsel appearing for the petitioner, put forth the following contentions;

(3.) Adv. Jaishankar V. Nair appearing for the Enforcement Directorate submitted that the challenge is premature since, as of date, all final reports filed by the Crime Branch have not been accepted by the jurisdictional Magistrate. Moreover, non- inclusion of the petitioner's name in the final reports filed with respect to the scheduled offences, will not absolve him from being prosecuted for the offence of money laundering. To buttress the contention, reliance is placed on the decision of the Apex Court in Pavana Dibbur v. Directorate of Enforcement [(2023) 15 SCC 91] and that of the Madras High Court in P. Rajendran v Assistant Director, Directorate of Enforcement [2022 SCC OnLine Mad. 9007]. It is submitted that, from the investigation conducted by the Enforcement Directorate it had come out that an amount of Rs.7,22,50,000.00 was collected from 28 parents by promising admission to their children in the Dr. Somervell Memorial CSI Medical College, Karakonam. The investigation also revealed that the petitioner used to send parents of prospective students to Sri. Thankaraj, the then Comptroller of the Medical College and at his direction, the parents used to handover money to Smt.Shiji, the Accounts Department Clerk in the Medical College. Part of that cash was used for developing the infrastructure of the Medical College and the remaining Rs.3.00 crores was handed over to the parent organization, the South Kerala Diocese and utilised for making payment towards contract works. The petitioner's role in the trail of the tainted money is well-established and he is therefore liable to be prosecuted for the offence of money laundering.