TaxTMI 
TaxTMI 
2014 (7) TMI 1221
X X X X Extracts X X X X
X X X X Extracts X X X X
.... described as a partner of a firm under the name and style of M/s. Chivas Trading Corporation, Trichy, who has been directed to appear in person today (15.07.2014) and produce the following documents: a) his Passport b) Bank Account details along with transcripts of himself and his family members and their companies. c) Ration Card/Voter I.D. Card d) Details of immovable properties held in India by him/family members, name, companies name, viz., M/s. Chivas Trading Corporation, Trichy. 3. The petitioner namely R. Geetha, in W.P (MD)No.11526 of 2014 is Mrs. R. Geetha, partner of the same who has been directed to appear in person/ authorized agent and it has not been specifically mentioned whether she ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 12.Reporting entity to maintain records.- (1) Every reporting entity shall (a) maintain a record of all transactions, including information relating to transactions covered under clause (b) in such manner as to enable it to reconstruct individual transactions; (b) furnish to the Director within such time as may be prescribed, information relating to such transactions, whether attempted or executed, the nature and value of which may be prescribed; (c) verify the identity of its clients in such manner and subject to such conditions, as may be prescribed; (d) identify the beneficial owner, if any, of such of its clients, as may be prescribed; (e) maintain record of documents evidencing ide....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cultural purposes to the tune of Rs. 2,06,00,000/-. But one third party has stood as a guarantor and the amount has been disbursed in the year 2006, mortgage has been executed on 22.03.2006, confirmation has been made on the same day and the amount due as on the date of filing of the petition is Rs. 3,04,90,377/-. During the pendency of the suit, when the bank went to attach and sell the property by invoking the provision of SARFAESI Act, it came to light that there is no such property available and hence a case has been registered. According to the learned Senior Counsel for the petitioners, before registering a case, the petitioners have received notices and appeared before the Court, co-operating with the investigation and thereafter onl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch power conferred under the Statute would be a draconian power and the parallel proceedings are initiated against the petitioners both before the criminal forum as well as under the provisions of the Money-Laundering Act, 2002. Therefore, learned Counsel for the petitioners submitted that the impugned summons deserves to be quashed. 10. Mr. K.K. Senthilvelan, learned Assistant Solicitor General of India, accepts notice for the respondent and submitted that the details mentioned in the schedule to the summon are essentially required for conducting investigation under the provision of Money-Laundering Act, 2002, and the documents sought for are well within the scope and ambit of Section 12 of the Act. The further contention is that the m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ir Companies and other relate to the immovable properties held by the petitioners in India and by their family members, Companies namely viz., M/s. Chivas Trading Corporation. 14. Thus all the documents called for clearly fall within the ambit of sub-sections (a) to (e) of Section 12(1) of the Act. In such circumstances the summons issued to the petitioners cannot be quashed at the very threshold. In any event, the summons is for production of the documents for the purpose of conducting an investigation under the Act. The petitioners apprehend harassment in the hands of the respondent/designated authority when they are appear for enquiry pursuant to the summons. 15. It is to be noted that the designated authority has to proceed in acc....