Trial Court Quashes Final PMLA Case Against Ahmed Buhari and Associates

Chennai, May 19, 2026: The Special Court for CBI Cases has quashed the last pending Prevention of Money Laundering Act (PMLA) case filed against Ahmed Buhari and his associates, bringing to a close a series of cases initiated by central investigative agencies over alleged coal import irregularities.

(Center) Ahmed Buhari, promoter of Coastal Energy and Coastal Energen 

According to a media note issued in this regard, the Special Court for CBI Cases, in Spl. CC No. 1/2022, passed orders on April 28, 2026, quashing the pending case. With this development, cases filed earlier by the Directorate of Revenue Intelligence (DRI), Central Bureau of Investigation (CBI), and Enforcement Directorate (ED) against Buhari and others have reportedly been quashed by judicial forums including the CESTAT Mumbai, the Delhi High Court and the Madras High Court.

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Ahmed Buhari, promoter of Coastal Energy and Coastal Energen, which operates a 1,200 MW Independent Power Producer (IPP) project in Tuticorin, was arrested on March 3, 2022, in connection with allegations relating to the supply of inferior coal to Public Sector Undertakings (PSUs).

The media note stated that several bail applications filed on his behalf were rejected by various courts despite the absence of a charge sheet by the CBI in the predicate offence. After spending more than 31 months in custody, Buhari was granted bail on October 24, 2024.

Subsequently, the Madras High Court quashed the case on October 7, 2025. Following this, the Special Court for CBI Cases reportedly closed all charges against Buhari and his associates on April 28, 2026.

The note further referred to recent observations by the Supreme Court regarding compensation in cases where individuals spend long periods in custody without formal charges and are later acquitted. The apex court has also reportedly directed the Law Commission to examine possible legal reforms in such matters.

Meanwhile, a separate legal dispute concerning the Corporate Insolvency Resolution Process (CIRP) of Coastal Energen remains pending before the National Company Law Appellate Tribunal (NCLAT).

The company had been taken over by the Dicky–Adani consortium on August 30, 2024, during the period Buhari was in custody. On September 6, 2024, the Chennai Bench of the NCLAT observed that the matter involved intricate questions of law relating to the eligibility of the successful resolution applicant and directed that the matter be heard on merits while ordering status quo.

However, the Supreme Court later stayed the NCLAT order and, on October 31, 2025, directed the appellate tribunal to complete the hearing within two months. The matter is presently sub judice before the NCLAT.

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