IN THE HIGH COURT OF JUDICATURE OF MADRAS AT

MADURAI BENCH
(Criminal Side)
Crl. O.P (MD) No. 10348 of 2023
IN
ECIR/MDSZO/13/2021 dated 24.05.2021
(On the file of Directorate of Enforcement, Madurai Sub Zonal Office)

Shri. Villayutham
S/o Velu Thevar
No. 7/12, Muthuramalinga Thevar Nagar
Rameshwaram
Ramanathapuram District. ---Petitioner/A1
Vs
State through the Assistant Director
Directorate of Enforcement
Madurai Sub Zonal Office
Madurai.
(ECIR/MDSZO/13/2021) ---- Respondent/ Complainant

COUNTER TO THE BAIL PETITION

The above-named Petitioner humbly begs to submit the following:

I, Het Ram, aged 49years, S/o Shri Bhanwar Lal Swami, working as an
Assistant Director, Directorate of Enforcement, Government of India, Ministry
of Finance, 1A, P and T Nagar Main Road, Madurai, do hereby solemnly affirm
and state as follows:

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2. I am the Respondent/Complainant herein and as such I am well
acquainted with the facts and circumstances of the case set out
hereunder.
3. At the outset the entire averments made in the bail application filed by
the petitioner are hereby denied as false and the petitioner is put to
strict proof of the same, except those which are specifically admitted
hereunder.

BRIEF FACTS OF THE CASE:

4. It is submitted that Jetty Police Station, Rameswaram had registered

an FIR in Cr.No. 95/2021 dated 11.04.2021 against Shri. Villayutham
S/o. Shri. Velu Thevar, Shri. VilvaBhuvaneswaran S/o. Shri.
Villayutham, Shri. Thangasamy S/o Shri. Thetchcinamoorthi and
unknown others under Sections 9, 39(1), 50 & 51(1) of the Wild Life
(Protection) Act, 1972 for processing and smuggling 2800 Kgs of
lifeless-processed and unprocessed sea cucumbers worth Rs. 2 Crores.

5. It is submitted that out of the offences invoked in the said FIR No.
95/2021 dated 11.04.2021, Sections 9, 39 and 51 of the Wild Life
(Protection) Act, 1972 are covered under Paragraph 6 of PART A of
the Schedule to the PMLA, 2002 under Sections 2(1) (x) & (y) of the
said Act and prima-facie, as the persons accused in the said FIR
appeared to have committed an offence of money laundering under
Section 3 of PMLA, 2002, an Enforcement Case Information Report
No. ECIR/MDSZO/13/2021 was recorded on 24.05.2021 to
investigate the same under the provisions of the PMLA, 2002.

6. It is further submitted that during the course of the investigation, it

was learnt that the following FIRs and WLORs were registered against

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Shri Villayutham and others for smuggling of Sea cucumbers, a
marine species protected under Schedule I of Wildlife(Protection) Act,
1972:

S.No Cr.No Station

.
1. WLOR No. 37/2010, U/s 9, 39 (1), Mandapam Forest
50, 51(1) of Wild Life Protection Station
Act, 1972
2. WLOR No. 26/2011, U/s 9, 39 (1), Mandapam Forest
50, 51(1) of Wild Life Protection Station
Act, 1972
3. WLOR No. 33/2011, U/s 9, 39 (1), Mandapam Forest
50, 51(1) of Wild Life Protection Station
Act, 1972
4. WLOR No. 06/2009, U/s 9, 39 (1), Forest Department,
50, 51(1) of Wild Life Protection Ramnad Range
Act, 1972
5. WLOR No. 07/2009, U/s 9, 39 (1), Forest Department,
50, 51(1) of Wild Life Protection Ramnad Range
Act, 1972
6. FIR No. 96/2013, U/s 5(a) of Thirupalakudi PS
Explosive Substances Act, 1908 and
9, 39 (1), 50, 51(1) of Wild Life
Protection Act, 1972

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7. FIR No. 01/2008, U/s 13(1)(2) and QBranch,
10(a)(4) of Unlawful Activities Ramanthapuram
Prevention Act. district.
8. FIR No. 48/2021, U/s 9, 39 (1), 50, Mandapam PS
51(1) of Wild Life Protection Act,
1972
9. FIR No. 95/2021, U/s 9, 39 (1), 50, Rameswaram Jetty PS
51(1) of Wild Life Protection Act,
1972
10. WLOR 18/2011, U/s 9, 39 (1), 50, Mandapam Forest
51(1) of Wild Life Protection Act, Station
1972
11. WLOR No. 13/2017, U/s 9, 39(1) Mandapam Forest
&(3), 40(2), 50 and 51(1) of Wild Station
Life Protection Act, 1972
12. WLOR No. 12/2021, U/s 9, 39(1), Mandapam Forest
50 and 51(1) of Wild Life Protection Station
Act, 1972
13. WLOR No. 14/2021, U/s 9, 39(1) & Mandapam Forest
(3), 40(2), 50, 51(1) and 57 of Wild Station
Life Protection Act, 1972
14. WLOR No. 06/2022, U/s 9, 39(1) & Mandapam Forest
(3), 40(2), 50, 51(1) and 57 of Wild Station
Life Protection Act, 1972
15. WLOR No. 17/2022 U/s 9, 39(1) & Mandapam Forest
(3), 40(2), 50, 51(1) and 57 of Wild Station
Life Protection Act, 1972

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7. It is submitted that from the year 2008 till 2022, 15 WLORs and FIRs
were registered against Shri Villayutham by Forest and Police
departments for offences committed under the Wildlife Protection Act,
1972, Explosive Substances Act, 1908 and The Unlawful Activities
(Prevention) Act, 1967. Processed Sea cucumbers weighing around
6010 Kilograms and unprocessed Sea cucumbers weighing around
2730 kilograms were seized by the Police Department and Forest
Department of Ramanathapuram vide the above listed FIRs/WLORs
registered against Shri Villayutham and others. He was arrested on
multiple occasions in connection with the smuggling of sea
cucumbers. A case was also registered against Shri Villayutham by Q
Branch, Ramanathapuram for smuggling generators to LTTE, a
banned outfit, to enable them to make explosives. Hence, it can be
clearly seen that Shri Villayutham is a habitual offender, who is
regularly involved in the poaching and smuggling of sea cucumbers in
and around Rameswaram town of RamanathapuramDistrict, which
borders with Gulf of Mannar, a rich habitat of Sea cucumbers.

8. It is further submitted that based on the reasons to believe that Shri

Villayutham had committed the offence of money laundering and that
he was in the possession of proceeds of crime involved in money
laundering and the records related to money laundering, search
operations under Section 17 of PMLA, 2002 were carried out at the
residential and business premises of Shri. Villayutham and the
residential premises of Shri. Kalidoss, Manager of Hotel Raamajayam
at Rameswaram and also at the premises of Hotel Raamajayam,
Rameswaram on 09.08.2021. Certain incriminating documentary and
digital evidences were seized during the search proceedings.

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9. During the course of the investigation, it was revealed that Shri
Villayutham, who had started his career as a fisherman coolie in the
year 1982, had started doing business of buying and selling of fish in
small scale. He had subsequently floated business entities viz. M/s
VVN Sea Foods, M/s VV Agency, M/s Hotel Raamajayam, M/s VV
Sea Shell Mart, M/s VV1 Dry Fish Process and M/s Hotel
Raamajayam Restaurant either in his name or in the names of his
family members. He had, over the years, been using them as a front
for projecting the proceeds obtained from the illegal smuggling
activities as legal business income. Shri Villayutham had deposited the
proceeds of smuggling activities in the form of cash, amounting to
multiple crores, in the bank accounts maintained in the names of
himself, his wife, his children and various business entities operated
by them. His childrenhad also stated in their voluntary statements that
the source of funds for the transactions in their bank accounts was
their father Shri Villayutham, since they were not gainfully employed
during that period. This money was then utilized to repay loans
availed in the names of his business entities to the tune of many
crores, periodically and through One Time Settlements offered by the
bank and also for the purchase of immovable properties, construction
and maintenance of Hotel Raamajayam and other business and family
expenses.The income declared in the Income Tax returns filed for the
business activities of Hotel, fish/seafood along with various other
business entities run in the names of Villayutham and his family
members is much lower than the total income determined / found
during investigation which has been used to purchase properties,
paying back the loans and various other expenses.

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10.It is also submitted that analysis of the Income Tax Returns filed by
M/s Hotel Raamajayam revealed that Hotel was mostly running in loss
and did not have the financial capacity to repay the loans availed to the
extent of multiple crores. Analysis of the IT Returns filed by Shri
Villayutham and SmtMangaleswari had revealed that income from
M/s VV Agency was paltry. No documentary evidence was submitted
corroborating the functioning of M/s Hotel Raamajayam Restaurant
and M/s VV1 Dry Fish Process. M/s VV Agency was closed since it
was incurring losses. M/s VV Sea Shell Mart was also closed since
2020.

11.It is further submitted that Transactions worth multiple crores,

predominantly in cash, were noticed in the bank accounts of his sons
during the period 2017 till 2022, when they were not gainfully
employed. IT Returns were filed by Shri Villayutham in the names of
his sons when they were still studying. This was done solely to project
the income earned through smuggling of sea cucumbers as untainted.
IT Returns were also filed in the name of Villayutham HUF, stating
the source of income as fishing business. The same source i.e., fishing
business was cited in the IT Returns of Shri Villayutham, his family
members and Villayutham HUF. It is clearly evident that IT Returns
were filed in the names of the family members and the HUF to give
legal coloring to the money earned through his illegal activities, which
is nothing but money laundering.

12.It is humbly submitted that from the statements given by Forest Range
Officer, Mandapam and Inspector of Police, Rameswaram, it is learnt

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 that Shri Villayutham had used local fishermen and local unemployed
youth for illegally poaching sea cucumbers, which were then
processed in his coconut grove at Rameswaram; that the processed sea
cucumbers were transported illegally to Sri Lanka, since it was the
nearest legal trading hub for sea cucumbers; that the sea cucumbers
would be then transported from Sri Lanka to China, Indonesia, and
other South East countries.

13.It is humbly submitted that Shri Villayutham was given multiple

opportunities during his examination under section 50 of the PMLA,
2002 and during the ED custody to explain the source of funds for the
purchase of properties, for the cash deposits amounting to multiple
crores in the bank accounts maintained in his name, in the names of
his family members and his business entities, source of funds for the
repayment of loans and other expenses and why the properties
purchased in his name and in the name of his wife Smt. Mangaleswari
are disproportionate to his known sources of income. He did not
provide any satisfactory explanation backed by documentary evidence
for the above transactions and their source. This shows that the said
money was obtained from illegal smuggling activities and then placed
into legal system, layered to distance it from its criminal origins and
subsequently projected as untainted. He has not cooperated with the
investigation in unraveling the entire gamut of transactions and has
been found to be clearly evasive and misleading to derail the
investigation.

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14.It is humbly submitted that the materials gathered during the course of
the investigation including the bank transactions, IT Returns,
voluntary statements given by Shri Villayutham, his family members
and others clearly point out the commission of offence of money
laundering. There was neither any justification nor evidence to show
that the source of funds to repay loans amounting to multiple crores, to
purchase multiple immovable properties, to pay exorbitant medical
college fees is his genuine business income. Furthermore, the accused
was likely to destroy incriminating evidence and the materials that
further point out the complicity of the accused.Therefore,on the
reasons to believe that Shri. Villayutham S/o Velu Thevar is guilty of
the offence of Money Laundering u/s. 3 of the PMLA, 2002,
punishable u/s. 4 of the PMLA, 2002, he was arrested on 13.03.2023
u/s 19(1) of the PMLA, 2002.It is humbly submitted that, in the event
of not arresting Shri. Villayutham S/o Velu Thevar, there was every
chance that he may tamper with and destroy the evidences and would
also induce the person/s who are acquainted with relevant facts about
the crime from divulging the same, which are required in investigation
in present case.

15.Shri Villayuthamwas produced before this Hon’ble Court on

14.03.2023. This Hon’ble Court was pleased to remand the accused to
Judicial Custody till 15.03.2023. This Hon’ble Court was pleased to
grant ED custody of the accused Shri Villayutham for 8 days from
15.03.2023 till 23.03.2023 vide Order dated 15.03.2023 in
Crl.M.P.No. 1145 of 2023. This Hon’ble Court was initially pleased to
remand the arrestee back to the Judicial Custody till 28.03.2023and
subsequentlytill 09.05.2023after due consideration of remand

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 extension petitions filed in the case. In the meanwhile, Prosecution
Complaint dated 18.04.2023 has been filed in the case before the Trial
Court and the Court has taken cognizance of the complaint vide CC
No. 03/2023.

REPLY TO THE AVERMENTS:

16.It is humbly submitted that the contents of Paragraph Nos.1, 2 and 3 of

the Petition herein are a matter of record and therefore do not warrant
any comments.

17. It is submitted that the averments made by the petitioner in paragraph

no. 4 are vehemently denied. The investigation under PMLA, 2002 has
revealed that multiple FIRs/WLORs were registered over a period of
more than 15 years against Shri Villayutham for indulging in illegal
smuggling of banned Sea cucumbers, a marine species protected under
the Wildlife (Protection) Act, 1972. Shri Villayutham had utilized the
business entities floated by him as a conduit to place the ill-gotten
money in the legal economic system. Shri Villayutham had deposited
the proceeds of smuggling activities in the form of cash, amounting to
multiple crores, in the bank accounts maintained in the names of
himself, his wife, his children and various business entities operated
by them.
18.It is humbly submitted that the averments made by the petitioner in
paragraph no. 5 is partly admitted only for the fact that he did duly
appear before the Enforcement Directorate but denied for the facts that
he neither co-operated with the investigation nor submitted the
relevant documents which were asked for during the investigation.

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 Furthermore, the petitioner never gave a proper and satisfactorily reply
during the investigation regarding the sources of his income.
19.It is humbly submitted that the averments made by the Petitioner
herein in Paragraph Nos. 6 is vehemently denied for the simple reason
that the investigation of predicate offence carried out by the other
respective LEAs is entirely different from the investigation being
carried out under the PMLA and the former does not have much
bearing upon the latter while carrying out the investigation.
As regards with respect to the ‘motive’ part, the same is vehemently
denied and on a closer scrutiny the motive of petitioner can be
carefully observed as to how he is directly involved in dealing with the
processed and unprocessed sea cucumbers for the past few years
despite knowing the fact that smuggling of these sea cucumbers is
completely prohibited and fetches a punitive action.
20.It is humbly submitted that the averments made by the Petitioner
herein in Paragraph Nos. 7 and 8 are vehemently denied.
Furthermore,it is also submitted that there are plethora of cases
pending against the petitioner with the different law enforcement
agencies and we must not forget about the ‘importance of sea
cucumbers’ in our ecosystem. In brief, we must know that Sea
cucumbers are echinoderms with soft, nutrients and excrete nitrogen,
ammonia, and calcium carbonate, key ingredients for coral reefs. Their
feeding also helps to slow the oceans’ acidification from human
activity. Holothuroidea species, due to their international demand, are
targeted by the local fishermen and traders. Sea cucumbers are in great
demand in China and Southeast Asian countries, where they are
regarded as a culinary delicacy and used in traditional medicines. This
has fueled an incredibly lucrative trade in the endangered animals, one

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 that has grown steadily in recent decades. In the 1980s, sea cucumbers
fetched less than Rs. 1000/Kg and now prices have risen to raging
from Rs. 10,000 – 15,000/Kg. Over the years, Palk Bay and the Gulf
of Mannar have witnessed extreme overfishing of sea cucumbers.
Population of Sea cucumbers have been drastically declining due to
illegal poaching and smuggling. tubular bodies resembling their
namesake vegetable. It is classified under the Class Holothuroidea and
plays a vital role in ocean ecosystems. As they feed on the detritus in
sediment, they help to recycle.
Thus, the detention of the petitioner becomes indispensable in curbing
these types of illegal smuggling activities related to the marine
species.
21. It is submitted that the averments made by the petitioner in paragraph
no. 9 are vehemently denied. It is to be taken into consideration that
the number of cases registered against the petitioner by the various
Law Enforcement Agencies warrants him to be a ‘habitual offender’
and not merely a simpliciter ‘first time offender’.
Furthermore, the nature of offence committed by the accused stands
on a different pedestal in terms of the gravity if we look onto and it
simply can’t be equated with just like any other ordinary type of
crime, by considering the fact that the crime committed by the
petitioner pertains to the marine ecosystems (bearing a direct impact
on the humans and the other marine species as well).
With respect to the petitioner appearing before us, the same is
acknowledged but he didn’t co-operate with the investigation process
which only shows his malafide conduct and intent.
22.It is submitted that the averments made by the petitioner in paragraph
no. 10 & 11 are vehemently denied. We are in a complete consonance

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with the detailed and reasoned order given by II Additional District
Court (CBI Cases), Madurai.
Furthermore, the petitioner’s dealing in with the processed and
unprocessed sea cucumbers by indulging in its smuggling activities
despite being fully aware of the fact that what he is doing for the past
fifteen years is nothing but an offence according to the Wildlife
Protection Act, 1972 and he could face the punitive action sooner or
later makes his activities to be completely contrary to the law.
Thus, considering the ‘petitioner’s bad past antecedents’, in
light of the aforementioned point as well as the other several registered
cases with the other Law Enforcement Agencies, there is every
likelihood that he will not co-operate, get abscond once the bail is
granted to him and these pointers makes the flight risk more
inevitable.

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 PRAYER

Based on the afore given reasons, it is most humbly prayed that this Hon’ble
Court may graciously be pleased to dismiss the instant bail application in
Crl.O.P(MD) No. 10342/ 2023 and to pass such further orders as deemed to be
fit on the facts and circumstances of the case and thus render justice.

Dated at Madurai, this 16th day of June, 2023.

RESPONDENT/COMPLAINANT
Through

R.VIJAYARAJAN
Special Public Prosecutor
Enforcement Directorate

BEFORE THE HIGH COURT

OF JUDICATURE OF MADRAS
AT MADURAI BENCH

Crl. O.P(MD)
No.10348 OF 2023
IN
ECIR/MDSZO/
13/2021 dated
24.05.2021

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 Counter on behalf of
the Respondent

Special Public Prosecutor

Directorate of Enforcement

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