TNN | May 2, 2011, 12.49am IST

http://timesofindia.indiatimes.com/city/chennai/Only-two-matters-under-Prevention-of-Money-Laundering-Act-registered-before-HC-since-2010/articleshow/8137889.cms

CHENNAI: Only two matters have come up before the Madras high court under the Prevention of Money Laundering Act (POMLA) since 2010. The Act, which was designed to prevent money laundering and provide for confiscation of property that might be obtained as a result of it, was amended in 2005 and 2009. Lawyers say that since the Act is relatively new, cases are just being discovered.

"It is like a new-born child. The Act came into being as an instrument to prevent the influx of money from illegal means, such as through narcotics in European countries. Its provisions state that if it can be proved in court that anybody has purchased property through tainted or illegal money or criminal proceeds, the property comes under the control of the Central Government," said M Dhandapani, central government standing counsel, who represents the deputy director, directorate of enforcement, POMLA, Chennai.

However, he said it was important for judges to further nurture and strengthen the Act. "The efficiency of the Act lies in the judges who wield it," said Dhandapani.

Justice K Chandru passed orders on one of these matters recently wherein criminal cases were registered against the petitioner, G Srinivasan, for forging documents and records in the name of non-existing companies to get loans from a bank.

Instead of making an appearance before the chairperson, adjudicating authority, POMLA, New Delhi, when he was issued a show cause notice, Srinivasan filed the writ petition challenging the provisional attachment order (prohibition of transfer, conversion or disposition of property) as well as the case filed against him.

Passing orders on the case, Justice Chandru ruled that when the Act itself provided for an inbuilt remedy, it was not open to the petitioner to rush to the court at the stage of provisional attachment.