Delhi High Court Quashes Summons Against Compact Capital, Kalptaru Fincap In ₹539.37 Crore Sunstar PMLA Case
Kirit Singhania
15 May 2026 2:47 PM IST
The Delhi High Court on Thursday set aside a September 25, 2024 cognizance order and consequent summons issued by the Additional Sessions Judge, Tis Hazari Courts, against Compact Capital Limited, Kalptaru Fincap Limited, and Naresh Aggarwal.
The case arises from the Directorate of Enforcement's ₹539.37 crore money laundering case linked to Sunstar Overseas Ltd, a rice trading company.
The Sessions Court, while taking cognizance under the Prevention of Money Laundering Act, had held that there was prima facie sufficient material to believe that funds were concealed, diverted, and siphoned off through a complex web of companies and layered financial transactions. It said this was allegedly done to regain indirect control over Sunstar Overseas even after proceedings before the NCLT.
Justice Girish Kathpalia set aside the order due to non-compliance with the proviso to Section 223 of the Bharatiya Nagarik Suraksha Sanhita. The court noted that the admitted position was that the trial court had passed the cognizance order without issuing notice to the proposed accused.
“After some discussion, with consent of both sides, these petitions are disposed of by setting aside the impugned orders dated 25.09.2024 in CC No. 01/2024 and the consequent summons, and directing the present petitioners to appear before the learned trial court on 10.06.2026, which is the date already fixed. In this regard, with consent of both sides, issuance of formal notice by the trial court for the purposes of hearing under Section 223 BNSS shall stand dispensed with. On 10.06.2026, the learned trial court shall fix fresh date for hearing on cognizance and then pass fresh orders. Accompanying applications also stand disposed of.”
The ED case arose from a December 31, 2020 CBI FIR against Sunstar Overseas and its former directors for alleged offences under the IPC and Prevention of Corruption Act concerning diversion and siphoning of loan funds obtained from a consortium of nine banks, allegedly causing losses of around Rs. 951.88 crore.
According to the ED, Sunstar Overseas and related entities allegedly created fictitious buyers, engaged in circular trading and sham arbitration proceedings, and diverted proceeds of crime through NBFCs and overseas entities before routing funds into the acquisition of Sunstar Overseas through insolvency proceedings before the NCLT.
The agency alleged that proceeds of crime totalling ₹539.37 crore were generated through these activities.
The sessions court had also observed that persons not named in the scheduled offence could still face prosecution under the PMLA if they knowingly assisted or were involved in activities connected with proceeds of crime, relying on the Supreme Court's ruling in Pavana Dibbur v. Enforcement Directorate.
While setting aside the impugned orders, the High Court has now directed the trial court to fix fresh date on June 10, 2026 and then pass orders on cognizance.
For Petitioner: Advocates M. A. Niyazi, Anamika Ghai, Kirti Kumari, Nehmat Sethi
For Respondent: Special Counsel Anupam S. Sharma with Advocates Harpreet Kalsi, Vashishth Rao, Abhiyant Singh, Amisha P. Dash