No legal bar to issue notice against TTV Dinakaran: ED
The senior advocate P Kumar appeared for TTV objected to ED's submission and said that since the court has also confirmed that it must be legal to declare him bankrupt, it cannot demand to declare him as bankrupt for non-payment of fines.
TTV Dinakaran; Representative image
CHENNAI: The Enforcement Directorate (ED) contended before the Madras High Court, that there is no legal bar to issue a notice to TTV Dinakaran, the General Secretary of AMMK, who has not paid Rs. 28 crore in a foreign exchange fraud case, declaring him as bankrupt.
A division bench of the Madras High Court (MHC) comprising Justice R Subramanian and Justice R Kalaimathi heard the case filed by ED against TTV Dinakaran for issuance of notice in the Foreign Exchange Regulation Act (FERA) case.
The Additional Solicitor General A R L Sundaresan appeared for the ED said that the Supreme Court has upheld the fine of Rs. 28 crore imposed against TTV under the FERA and contended that there is no legal bar in demanding him to declare as bankrupt as he has been in default for many years.
The senior advocate P Kumar appeared for TTV objected to ED's submission and said that since the court has also confirmed that it must be legal to declare him bankrupt, it cannot demand to declare him as bankrupt for non-payment of fines.
After the submissions, the bench adjourned the case to September 4 for further arguments.
In 1998, the ED imposed Rs.31 crore fine on TTV in the FERA case. However, the fine amount was reduced to Rs.28 crore.
Subsequently, TTV filed a petition in the MHC against a notice issued by the ED declaring Dinakaran as bankrupt for non-payment of fine against him in a FERA case.
The Madras High Court canceled the notice issued against TTV. Challenging this the ED filed an appeal in the MHC.