Madras HC rejects SRM univ founder's plea challenging ED summons over donation for medical seat

CHENNAI: The Madras High Court refused to restrain the Directorate of Enforcement (ED) from summoning TR Paarivendhar, politician and founder-chairman of SRM University, in the allegation of receiving donations for medical admission.

Merely repaying the money to the victims would not wash away the offences of money laundering, said a division bench of Justice SM Subramaniam and Justice V Sivagnanam while dismissing his petition challenging the summon issued to him.

The investigation could not be restrained from performing its duties just because the petitioner paid back Rs 88.66 crore to the 142 alleged victims, said the bench.

Instead of approaching the court against the summon, the petitioner should cooperate with the investigation agency to complete the case, it added.

The ED submitted that Rs 88.66 crore had been taken from the accounts of a public trust run by Paarivendhar and his family members to bail him out of the predicate offence, and said that there was a necessity to investigate the matter.

In 2016, the central crime branch (CCB) lodged a case against Madhan of Vendhar Movies, owned by Paarivendhar, for allegedly cheating several individuals after collecting crores of rupees to get admission in SRM Medical College.

In 2017, a total of Rs 88.66 crore was paid by the petitioner to the alleged victims as per the orders of the Supreme Court and the case against the college for the predicate offence was quashed.

However, the ED had initiated parallel proceedings under the Prevention of Money Laundering Act (PMLA) of 2002. Following that, the ED issued a summons against the petitioner and his family members.