The Madras High Court has upheld the decision of a single judge declaring AMMK general secretary TTV Dhinakaran bankrupt and invalidating the notice issued by the enforcement department. The Madras High Court has dismissed the appeal filed by the Enforcement Directorate against the order of the single judge quashing the notice issued by the Enforcement Directorate.

AMMK general secretary TTV Dhinakaran was charged under the Foreign Exchange Regulation Act (FERA) by the enforcement department for allegedly receiving 62.61 lakh rupees worth of US dollars from abroad during the period 1995–1996 through an unauthorised agent and then illegally transferring the amount to companies in England.

In 1998, the Enforcement Directorate imposed a fine of Rs 31 crore on TTV Dhinakaran. The Enforcement Appellate Commission heard the appeal filed by TTV Dhinakaran against this order and ordered to reduce the fine from Rs 31 crore to Rs 28 crore.

TTV Dinakaran filed a petition in the Madras High Court challenging the notice issued by the Enforcement Department declaring TTV Dinakaran bankrupt for non-payment of this fine.

The Enforcement Directorate filed an appeal in 2005, challenging the order. This petition was investigated in several stages. At present, the hearing of this case is going on in the session of High Court Judges R. Subramanian and R. Kalamati.