The Tamil Nadu government has decided to file an appeal against the acquittal of former minister K. Ponmudy and six others in a ₹28.37-crore red sand quarrying case, the Enforcement Directorate (ED) informed the Madras High Court.
During proceedings before a division bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan, the central agency stated that the state government had formally communicated its intention to challenge the trial court’s verdict. In light of the submission, the High Court directed the ED’s special public prosecutor to file a detailed counter affidavit within two weeks to a batch of writ petitions filed by the acquitted individuals.
The petitions seek to quash ongoing money laundering proceedings initiated by the ED under the Prevention of Money Laundering Act (PMLA), 2002.
The case stems from a First Information Report (FIR) registered by the Villupuram District Crime Branch police on September 23, 2012, alleging violations of the Indian Penal Code and laws governing mines and minerals. The prosecution alleged that during his tenure as Minister for Mines and Minerals between 2007 and 2011, Ponmudy entered into a criminal conspiracy to award red sand quarrying licences to his son, Gautham Sigamani, as well as relatives and associates.
Following a full trial, the Villupuram Principal District and Sessions Court acquitted all seven accused on April 2, 2026. The trial court held that the prosecution had failed to establish a nexus between the grant of quarry leases and any illegal gain or conspiracy. The court further concluded that the revenue loss figures presented by the prosecution were speculative and unsupported by primary data.
In his petition before the Madras High Court, Ponmudy contended that because all seven accused were acquitted of the underlying predicate offence, no basis remains for the ED to pursue prosecution for money laundering in a Chennai sessions court.
The High Court will hear the matter further following the submission of the ED’s counter affidavit.
Sources
– The Hindu: https://www.thehindu.com/news/national/tamil-nadu/tn-government-to-appeal-against-ponmudys-acquittal-in-2837-crore-red-sand-quarrying-case-ed-tells-madras-hc/article71512675.ece
Source: The Hindu – National
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Story synopsis gathered from: The Hindu – National — source
