The instances of corruption reported from Malabar Cements Limited (MCL) qualify to be proceeded under the Prevention of Money Laundering Act, the Enforcement Directorate (ED) has submitted before the Kerala High Court.
In a statement filed before the court, V. Praveen, Deputy Director of the ED Kozhikode Sub Zonal Office, said the offence of money laundering was a continuous offence.
It involved investment, re-investment, and ultimately the proceeds of the crime were projected as untainted by the beneficiaries. The enjoyment of tainted properties was also a crime, the statement said.
The agency filed the statement on a petition filed by V. Chandramouli and others seeking to quash the proceedings of the ED against them in the Malabar Cements case.
The Vigilance and Anti-Corruption Bureau had already booked a few cases in the deals involving the petitioners. Terming the offence of money laundering as a serious threat to the financial system, the ED submitted that the offence was also a challenge to the integrity and sovereignty of the country. The agency stated that a thorough investigation was needed to find out the beneficiaries of corruption, and those who were involved in conspiracy and cheating had wrongfully gained and siphoned off ₹23.8 crore from Malabar Cements Limited.
The money trail of the payment receipt from Malabar cements also has to be ascertained, it said. The ED submitted that the kingpin and the associates involved in the conspiracy were to be summoned, documents verified, and their restatements recorded in the case.
