Madras High Court Quashes PMLA Proceedings Against Ponmudi After Predicate-Case Acquittal

The Madras High Court quashed money-laundering proceedings against former Minister K Ponmudi following his acquittal in the predicate criminal case.

Background and legal issue

The Enforcement Directorate's PMLA prosecution depended on the scheduled offence forming the basis of the alleged proceeds of crime. The trial court had acquitted all accused in that underlying case on April 2, 2026.

Court's reasoning and legal position

Chief Justice S A Dharmadhikari and Justice G Arul Murugan applied the Supreme Court's decision in Vijay Madanlal Choudhary. The Bench said the PMLA case could not continue on the existing predicate-offence position, while preserving the ED's ability to act lawfully if that position later changes.

Operative effect and next step

The pending PMLA proceedings were quashed. Any subsequent action will depend on legally relevant developments in the underlying criminal case.