Kerala High Court Quashes PMLA Proceedings Against Ex-MLA KM Shaji In Plus Two Bribery Case

The Kerala High Court on Monday quashed the proceedings initiated by the Enforcement Directorate against Indian Union Muslim League (IUML) leader and former MLA K M Shaji under the Prevention of Money Laundering Act, 2002 (PMLA) in connection with the plus two bribery case.

A single bench of Justice P V Kunhikrishnan passed the order quashing the proceedings. In April 2023, another single bench had quashed the FIR registered against Shaji by the Vigilance and Anti Corruption Bureau stating that there was no allegation of any demand made by the Petitioner.

The Court on Monday passed the order quashing the PMLA proceedings finding force in the submission of the Counsel for the Petitioner that according to the decision of the Apex Court in Vijay Madanlal Choudhary and Others V. Union of India, if criminal proceedings are quashed the proceedings under the PMLA will not stand.

Shaji is alleged to have taken a bribe of Rs. 25 lakhs from the Manager of Azhikode Higher Secondary School, Kannur in 2014-15 for sanctioning Plus Two Course in the school. The Vigilance and Anti Corruption Bureau had registered an FIR against Shaji under Sections 7 and 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988 in connection with the bribery allegations.

In light of the registration of the FIR against Shaji by the VACB, the Enforcement Directorate initiated proceedings under the provisions of the PMLA. In the present petition, the proceeding initiated by the ED was challenged. The Court quashed the order passed by the ED under Section 5(1) of the PMLA, ordering provisional attachment of the petitioner’s property.

While quashing the FIR against Shaji in April, the single bench had observed that no prima facie case had been made out against him:

“There is no allegation, either in the complaint given by the defacto complainant or in the FIR or the statement of any of the witnesses, that the petitioner has ever made any demand. It is settled that demand for illegal gratification by the accused is a pre-requisite for constituting an offence under sections 7 and 13(1)(d) of the PC Act.”

The Petitioner had also argued that the complaint forwarded by the Chief Minister’s Officer to the Vigilance Department based on which the FIR was registered, was due to political vendetta by Kuduvan Padmanabhan, a local CPI(M) leader .

Case Title: K.M. Shaji Vs Union Of India