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Madras High Court Dismisses Periyasamy Family’s Challenge to ED Money-Laundering Case

The bench directed the petitioners to use the PMLA adjudicatory mechanism as their first remedy.

Overview

  • A division bench of Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan dismissed the writ petitions on January 5, 2026.
  • The petitions by Minister I. Periyasamy, his son I. P. Senthilkumar, and daughter P. Indira sought to quash the ECIR and all consequential ED actions, including a Section 17(4) application and a show cause notice.
  • The court held that the petitioners bypassed the statutory route under the Prevention of Money Laundering Act and must first approach the adjudicating authority.
  • The ED registered an ECIR in July 2025 and carried out searches at Periyasamy’s residence and official premises after taking cognisance of the alleged offence.
  • The money-laundering probe stems from a 2012 DVAC disproportionate-assets case of Rs. 2.01 crore, in which a discharge by the special court was set aside by the High Court in 2025 and is presently under an interim Supreme Court stay.