The Karnataka High Court quashed Enforcement Directorate proceedings against former minister and mining baron Gali Janardhan Reddy, who came under the income tax scanner after his daughter's ostentatious wedding made headlines, under the Prevention of Money Laundering Act.
The verdict was pronounced by a division bench comprising Chief Justice Subhro Kamal Mukherjee and Justice R B Budhihal. According to the bench, the ED cannot initiate proceedings against Reddy and his associates' property for offences committed prior to the inclusion of the amended provisions of the Prevention of Money Laundering Act, 2009.
Under sections 5 and 8 of the Prevention of Money Laundering Act 2002, the ED had passed an order and had attached the shares bought by Reddy and his wife Laxmi Aruna and other directors of Obalapuram Mining Company Private Limited by investing about Rs 900 crore in Brahmani Industries Limited.
The mining baron and his companies were booked under various IPC sections including 420 (cheating) and 471 (forgery) and under Section 13 of Prevention of Corruption Act, 1988 (criminal misconduct by a public servant).
The Karnataka minister apparently spent more than Rs 500 crore on her daughter's wedding is one of the main accused in the Bellary illegal mining scam.