Attachment of properties under TANPID Act will take precedence over attachment under money laundering charges: Madras High Court
Justices G.R. Swaminathan and V. Lakshminarayanan come to the rescue of thousands of depositors duped by fraudulent financial institutions which had promised high rate of interest
The Madras High Court has ruled that attachments made under the Tamil Nadu Protection of Interests of Depositors (TANPID Act) of 1997 will take precedence over attachments under the Prevention of Money Laundering Act (PMLA) of 2002. This decision was made in a case involving Viswapriya (India) Limited, one of the companies founded by R. Subramanian of the now-defunct Subhiksha retail chain, where 34 out of 1,240 depositors were senior citizens who had invested their retirement benefits.
The court noted that the Enforcement Directorate (ED) had objected to the sale of the properties but was stayed by the Supreme Court on April 12, 2019. The court emphasized that Section 14 of the TANPID Act states that it shall prevail over any inconsistent provisions in other laws, including the PMLA. The court also highlighted that allowing central legislations to override state legislations would contradict the federal structure outlined in the Constitution's Article 246.
Consequently, the liquidation of the properties attached under the TANPID Act will proceed, aiming to ensure that the depositors receive the due compensation soon.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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