Investment firm director acquitted of taking deposits without valid licence

The Kuala Lumpur Sessions Court today acquitted and discharged investment company director Murugan Supparamaniam of a charge of accepting investment deposits without a valid licence under the Financial Services Act 2013 (Act 758).

Murugan’s counsel, Baljit Singh Sidhu, confirmed the decision when contacted by Malaysiakini.

In his judgment, judge Azrul Darus ruled that the prosecution had failed to establish a prima facie case against Murugan over allegations that he received RM250,000 from an individual in Desa Sri Hartamas on Aug 12, 2022.

“The court found that the evidence presented showed the amount was payment for a subscription of Redeemable Preference Shares in Personal Banc Berhad, based on the subscription agreement signed between the parties involved,” Baljit said.

“The complainant in this case had also received benefits from the investment, including dividend payments and gold coins, which proves that the transaction was indeed an investment and not a deposit as defined under Sections 136 and 137 of the Financial Services Act 2013.”

Following this, the judge ordered that Murugan be acquitted and discharged without having to enter his defence.

Murugan was charged on July 25, 2024, with accepting RM250,000 for investment purposes without a valid licence - an offence under Section 137(2) of the Financial Services Act 2013, which carries a maximum penalty of 10 years’ imprisonment, a fine of up to RM50 million, or both.

Apart from Baljit, Murugan was also represented by Gurpreet Kaur Pannu, while deputy public prosecutor Saravanan Meyappan prosecuted.

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