Patna High Court – Orders
K. Ayyappan vs The Union Of India, Ministry Of Finance, … on 6 April, 2026
IN THE HIGH COURT OF JUDICATURE AT PATNA
CRIMINAL MISCELLANEOUS No.34719 of 2023
Arising Out of PS. Case No.-54 Year-2010 Thana- VIGILANCE District- Patna
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K. Ayyappan Shri S. Krishnamurthy Resident Of 265, Iiird Cross, Velayutha
Nagar, Jayankondam, District - Ariyalur, Tamilnadu, Pin Code 621802
... ... Petitioner/S
Versus
1. The Union Of India, Ministry Of Finance, Department Of Revenue, Director
Of Enforcement Through Its The Union Of India, Ministry Of Finance,
Department Of Revenue, Director Of Enforcement Through Its Director,
Lok Nayak Bhawan, Khan Market Road, P.S. - Khan Market, New Delhi,
Pin Code- 110003
2. The Deputy Director, Directorate Of Enforcement, Patna Zonal Office, Bank
Road, Chandrapura Place The Deputy Director, Directorate Of Enforcement,
Patna Zonal Office, Bank Road, Chandrapura Place, P.S. - Gandhi Maidan,
Town And Distt. - Patna, Pin Code - 800001
3. The Assistant Director, Directorate Of Enforcement, Patna Zonal Office,
Bank Road, Chandrapura The Assistant Director, Directorate Of
Enforcement, Patna Zonal Office, Bank Road, Chandrapura Place, P.S. -
Gandhi Maidan, Town And Distt. - Patna, Pin Code - 800001
... ... Opposite Party/s
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Appearance :
For the Petitioner/s : Mr. Sanjeev Ranjan, Adv.
For the Opposite Party/s : Mr. Dr. Krishna Nandan Singh (Asg)
For the ED : Mr. Rajesh Ranjan, Adv
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CORAM: HONOURABLE MR. JUSTICE ANSUL
ORAL ORDER
6 06-04-2026
Heard learned counsel for the petitioner and learned APP
for the State.
2. The present application has been filed by the petitioner
invoking inherent jurisdiction of this Hon’ble Court for quashing the
order dated 15.09.2022 passed in Special Trial No. (PMLA)-8 of
2022, whereby and whereunder the learned Sessions Judge-cum-
Special Judge (PMLA), Patna was pleased to take cognizance for
offence under section 4 of the Prevention of Money Laundering Act.
3. A written report was submitted before the Officer in Charge
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of Vigilance Police Station, Patna by the Superintendent of Police,
Vigilance Investigation Bureau, Patna based on the enquiry report as
contained in letter no. 450 dated 16.07.2010 by the Vigilance Enquiry
stating therein that Mr. K. Senthil Kumar while working as the
Municipal Commissioner of Patna and as Managing Director in
Water Board and Bihar Rajya Jal Parishad in connivance with other
officials, builders, mafia and suppliers has committed serious
financial irregularities during his tenure in between 20.02.2009 to
23.02.2010 and wrongfully gained by taking bribe and
misusing the post, which resulted into financial loss to the exchequer.
It has been further alleged that on the basis of information received
directly and confidentially about such irregularities being committed
by the authorities of PMC, the Vigilance Department had undertaken
the enquiry and submitted the report along with the documents,
which formed the basis of instant First Information Report, lodged by
Sri Ajay Kumar Chaudhary, Deputy Superintendent of Police,
Vigilance Investigation Bureau, Patna vide Vigilance P.S. Case No.
54 of 2010, for offence under sections 467, 468, 420, 406, 409,
477(A), 477, 120(B), 201 of the Indian Penal Code and Sections
7/8/13(2) read with section 13(1)(c) (d) of Prevention of Corruption
Act, 1988 and Section 4, 5, 11, 12 and 13 of Bihar Prevention of
Specified Corrupt Practices Act, 1983 alleging therein that based on
perusal of orders passed in respect of granting statutory approval of
maps of 130 multi-storied buildings by the then Patna Municipal
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Commissioner, it transpired that the fine imposed as condonation fee
for compounding and adjustment in respect of deviation was charged
at a lesser rate, than 5 times prescribed by an Executive Order No. 96
/07 dated 18.09.2007 issued by the predecessor Municipal
Commissioner, Patna Municipal Corporation, causing loss to the
Patna Municipal Corporation to the tune of Rs. 7,46,66,669/-. The
second charge pertains to revenue loss caused on account of illegal
allotment of hoarding to five advertising agencies at a lesser rate in
lieu of the prescribed rate approved by the Standing Committee for
previous years. The third charge pertains to loss of revenue of Rs.
64,41,225/- on account of lesser collection of holding tax from 5
hotels of Patna.
Further allegation is that the petitioner by abusing his official
position has caused a loss of revenue to Patna Municipal
Corporation.
4. Learned counsel for the petitioner submits that the
Vigilance Bureau after conducting Investigation in perfunctory and
mechanical manner submitted charge sheet against 3 accused persons
and the name of the present petitioner does not figure in the charge-
sheet. The Vigilance submitted charge sheet, vide Charge Sheet No.
70 of 2012 dated 27.07.2012 under sections 467, 468, 420, 406, 409,
477(A), 477, 120(B), 201 of the Indian Penal Code and Section 7 /
8 / 13(2) read with section 13(1)(c) (d) of Prevention of Corruption
Act, 1988 and Section 4, 5, 11, 12 and 13 of Bihar Prevention of
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Specified Corrupt Practices Act, 1983. The Learned Special Judge
Vigilance-I, Patna after the submission of aforesaid Charge Sheet
took cognizance and consequently, the Director, Directorate of
Enforcement, Patna Zonal Office recorded ECIR No. ECIR / 19 /
PAT/2012 (PAO No. 07/2018 dated 28.03.2018 for initiation of
investigation under Prevention of Money Laundering Act, 2002,
wherein it was alleged that the accused persons named therein have
committed offence under section 120(B), 420, 467 of the Indian
Penal Code and Section 7/8/13(2) read with section 13(1)(c) (d) of
Prevention of Corruption Act, 1988, which are covered as Schedule
offence under Para 1 and 8, in Part – I of the Schedule to the
Prevention of Money Laundering Act, 2002 as amended as the
registration of schedule offence is the condition precedent to initiate
action under Prevention of Money Laundering Act, 2002. The name
of the petitioner does not figure in the ECIR lodged by the
Enforcement Directorate under section 43 of the Act. Counsel for the
petitioner states that in connection with Vigilance P.S. Case No. 54 of
2010 charge-sheet no. 70 of 2012 dated 27.07.2012 was filed and the
petitioner was not an accused in that case. The accused in the case
was K. Senthil Kumar. Counsel for the petitioner has brought on
record the order dated 09.11.2023 passed in Cr. Misc. No. 4420 of
2023 where this case qua K. Senthil Kumar was quashed. Counsel
for the petitioner further submits that after quashing of the predicate
offence against K. Senthil Kumar thus at present there is no
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predicate offence pending against K. Senthil Kumar. The petitioner
was implicated in the ECIR No. ECIR/19/PAT/2012 as a persons
who indulged in laundering of the money earned by K. Senthil
Kumar through proceeds of crime. Counsel for the petitioner submits
that in the absence of predicate offence no proceed of crime exists
and thus the ECIR against K. Senthil Kumar is bound to culminate
in his acquittal. The case in such situation is bereft of any material
against the main accused K. Senthil Kumar and thus there is no
justification for allowing this case to continue which would be an
abuse of the processes of law.
5. Mr. Rajesh Ranjan vehemently opposes the prayer and
states in his counter affidavit that:
” It is evident that proceeds of crime generated by K.
Senthil Kumar have been laundered through K. Indira
Memorial Educational Trust as K. Ayyappan, the
managing trustee has failed to discharge burden of
proof cast upon him under section 24 of PMLA. This
transaction utilized for making the trust operational,
is involved in money laundering.
Provisional Attachment Order No. 07/2018 on
28.03.2018, has been issued by the Complainant in
ECIR No. ECIR/19/Pat/2012 dated 06.12.2012.”
6. In the opinion of this court absence of any predicate offence
absolves any person from the offences under PMLA therefore, order
dated 15.09.2022 passed in Special Trial No. (PMLA)-8 of 2022, by
the learned Sessions Judge-cum-Special Judge (PMLA), Patna
hereby stands quashed.
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7. Accordingly, the application stands allowed.
(Ansul, J)
Siddharth Soni/-
U T
