In a significant legal development, the Madras High Court on Monday dealt a blow to Tamil Nadu's Rural Development Minister, I Periyasamy, and his family members. The court rejected their petitions that sought to challenge an investigation launched by the Enforcement Directorate (ED) in connection with an alleged money laundering case.
Court Cites Procedural Lapse in Dismissal
The first bench, comprising Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan, dismissed the pleas after the ED informed the court that the petitioners had approached the high court prematurely. The central agency pointed out that the minister and his family had not first exhausted the alternative legal remedy available to them under the Prevention of Money Laundering Act (PMLA).
The bench directed the minister and his family to approach the adjudicating authority established under the PMLA as per the law. The court clarified that if the parties remained aggrieved by the orders of that adjudicating authority, they could then file the necessary legal pleas.
Long-Running Case Over Alleged Disproportionate Assets
The issue stems from a case originally registered by the Directorate of Vigilance and Anti-Corruption (DVAC) back in 2012. The agency had accused Periyasamy and his family of amassing wealth disproportionate to their known sources of income. The alleged amount was ₹2.01 crore, accumulated during his tenure as the Minister for Revenue between 2006 and 2011.
While a special court in Dindigul had initially discharged them from the case, the Madras High Court, in April 2025, set aside that discharge order. The high court had then directed the special court to frame charges and complete the trial within a strict timeline of six months.
ED Steps In and Legal Wrangling Continues
Following the high court's April 2025 order, the Enforcement Directorate took cognisance of the predicate offence. In July 2025, the ED registered an Enforcement Case Information Report (ECIR) under the PMLA and conducted searches on various premises linked to the minister.
The legal saga took another turn when the minister appealed to the Supreme Court against the high court's order to proceed with the trial. The Supreme Court subsequently stayed the high court's order. Relying on this stay, Periyasamy and his family then moved the Madras High Court again, seeking a stay on the ED's proceedings as well.
However, with Monday's dismissal, the minister's legal strategy to halt the ED probe has met a procedural hurdle, compelling him to follow the designated channel under the anti-money laundering law before seeking higher judicial intervention.
