FAROUK IRANI AGED 75 YEARS S/O SHRI. MARWAN RUSTOM IRANI NO. 10 RIVER VIEW ROAD KOTTURPURAM CHENNAI Vs. THE DEPUTY, THE DIRECTORATE OF ENFORCEMENT GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE 2ND AND 3RD FLOOR MURUGESA NAICKER COMPLEX

JUDGEMENT

(1.) Money is neither clear nor dirty, per se, but becomes tainted as it moves from the legal economy across legal-illegal boundary into the underground economy. Alleging that the accused persons also contributed for the underground economy, a complaint has been laid by IDBI Bank Limited.

(2.) Criminal Original Petition No.20423 of 2016 has been filed by the petitioner / first accused, Farouk Irani, (Ex-Managing Director of First Leasing Company), (aged 75 years), the accused in C.C.No.63 of 2016 before the Special Court, Chennai, in respect of the offence under Sections 3 and 4 of the Prevention of Money-Laundering Act, 2002 (hereinafter referred to as "the PMLA"), seeking the relief of bail.

(3.) The transaction involves two companies, i.e., a Non-Banking Financial Company and a Banking Financial Company and the allegation is that the Non-Banking Financial Company has availed loans from a consortium of banks, over a period of time, skillfully masking the real financial health of the company, through fudged accounts and manipulated balance sheets.