Murali Krishna Chakrala Vs Deputy Director (Madras High Court)
The Madras High Court has discharged Murali Krishna Chakrala, an auditor, from prosecution in a money laundering case (Spl.C.C.No.07 of 2021) registered by the Enforcement Directorate (ED). The case originated from a complaint filed by Indian Bank regarding suspicious foreign exchange transfers based on forged import documents submitted by Mani Anbazhagan. The ED’s investigation revealed a network involving fictitious bank accounts and fraudulent bills of entry, leading to the arrest of several individuals. Chakrala’s involvement arose when the ED discovered that he had issued five Form 15CB certificates to B.K.Electro Tool Products, one of the entities involved in the suspicious transactions, at the request of Kiyam Mohammed, who was later identified as a key figure in the scheme.
Also Read SC Judgment: No Prosecution of CA for Issuing Form 15CB Certificates Without Forgery Knowledge: SC
The ED’s supplementary complaint arrayed Chakrala as an accused, alleging that he facilitated fraudulent foreign remittances by issuing the Form 15CB certificates without proper due diligence regarding the financial and business background of the involved parties. However, Justice N. Anand Venkatesh, after hearing arguments and perusing the records, allowed Chakrala’s criminal revision petition challenging the dismissal of his discharge plea by the trial court. The High Court observed that Chakrala had merely issued the certificates for a nominal fee of ₹1,000 per certificate based on documents provided by his client, Kiyam Mohammed, and was not required to verify the genuineness of these documents as per the nature of Form 15CB. The court drew an analogy to panel advocates providing legal opinions on title documents without being expected to ascertain their authenticity.
Furthermore, the court noted that Chakrala had cooperated with the ED’s investigation, including identifying Kiyam Mohammed, which aided in uncovering the larger conspiracy. The High Court also pointed out that only one of the seven banks involved in the foreign remittances had insisted on the Form 15CB certificates, suggesting they were not a mandatory requirement for all transactions. Considering these factors, the court concluded that there was no prima facie evidence to suggest Chakrala was part of the money laundering conspiracy. While discharging him from prosecution, the court clarified that the prosecution was at liberty to enlist Chakrala as a witness. Chakrala also submitted an affidavit undertaking to depose truthfully and cooperate fully with the prosecution during the trial.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
