Deputy Director Vs Murali Krishna Chakrala (Supreme Court of India)
The Hon’ble Supreme Court in the case of The Deputy Director V. Murali Krishna Chakrala [Special Leave Petition (Criminal) Diary No(S). 8123/2024] upheld the judgment by the Hon’ble Madras High Court in the case of Murali Krishna Chakrala v. The Deputy Director, Directorate of Enforcement [(Crl.R.C.No.1354 of 2022), order dated November 23, 2022] held that the Petitioner, a Chartered Accountant, who issued Form 15CB certificates to client entities without knowledge of forged documents or fraudulent intent, is not a conspirator and is discharged from prosecution under the Prevention of Money Laundering Act, 2002 (“PMLA”). The Court allowed his discharge while giving liberty to the prosecution to examine him as a witness.
Facts:
Murali Krishna Chakrala (“the Petitioner”) before the Hon’ble Madras High Court, is a Chartered Accountant who issued five Form 15CB certificates under Income Tax Rules, 1962, at the request of his client, which were used for foreign remittances.
The Directorate of Enforcement (“the Respondent”) alleged involvement of the Petitioner in a money laundering scheme involving forged import documents and fictitious bank accounts aiding illicit foreign exchange transfer of Rs. 8 crores.
The Petitioner contended that he performed his professional duty by issuing certificates without examining the genuineness of import documents or knowing about forged papers; the accounts and documents falsified by others without his knowledge.
