The ECIR and the ED’s probe were based on two first information reports (FIRs) registered against by the Crime Branch, Crime Investigation Department (CBCID) for allegedly usurping properties belonging to the Chrome Leather Company.
However, the division bench noted that on September 23 this year, a single-judge of the Madras High Court had quashed the two FIRs registered by the CBCID. It, therefore, said that the ED cannot proceed with its ECIR.
The bench held that when a court of law had already quashed a case related to the predicate offence, the ED could not be allowed to proceed further with the investigation which it had initiated solely on the basis of the predicate offence.
Source: Barandbench
