TaxTMI 
TaxTMI 
2018 (3) TMI 1065
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....d corresponding to CC No. 24 of 2013 before the Special Judge for CBI Cases, Hyderabad (CBI Case). 2. Attachments effected in the entire O.C. 276 of 2014 totaling to Rs. 232,27,55,806/- * M/s Jagati Publications Ltd: Shares of M/s Indira Television Pvt Ltd valued at Rs. 10,20,00,000/- * M/s Carmel Asia Holdings Pvt Ltd.: Share application money purportedly pending with M/s Saraswat Power Pvt Ltd: Rs. 3,20,00,000/- and shares of M/s Indira Television Pvt Ltd valued at Rs. 25,00,000/- * M/s Janani Infrastructure Pvt Ltd.: Land and Buildings valued at Rs. 2,95,74,251/- * M/s India Cements Ltd.: Immovable Property valued at Rs. 3,34,82,000/- * M/s India Cements Ltd.: Movable Property valued at Rs. 116,99,35,700/- * M/s Bharathi Cements Corporation Pvt. Ltd: movable property valued at Rs. 95,32,63,855/- 3. The confirmation was challenged by the following parties on filing of following appeals: - * FPA-PMLA-1053/HYD/2015: M/s Jagati Publications Ltd. * FPA-PMLA-1054/HYD/2015: M/s Janani Infrastructure Pvt Ltd. * FPA-PMLA-1055/HYD/2016: M/s Carmel Asia Holdings Pvt Ltd. * FPA-PMLA-1045/HYD/2016: M/s ....
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.... of Revenue (ASN.IV) as well as permission to draw 10 Lakh Gallons of water from Krishna River vide GO Ms No. 146 dated 22.07.2008 of Irrigation and Command Area Development Department (CAD) and 13 million Cubic Feet of water from Kanga River vide GO Ms. No. 94 dated 12.08.2009 of Irrigation and Command Area Development Department (CAD) Department. iii) The brief facts of the case are that in the year 1999, Shri C. Ramachandran had got the registration certificate in the name of M/s. Raghuram Cements & Minerals Pvt. Ltd. from the registrar of Companies and the name M/s. Raghuram Cements Pvt. Ltd. was changed during the year 2005. Subsequently on 08.12.2005 M/s. Raghuram Cements Private Ltd. was changed as M/s. Raghuram Cements Limited and on 06.08.2008, M/s. Raghuram Cements Limited was changed as M/s. Bharathi Cement Corporation Limited. Lastly during the course of 2010 a French Multinational company M/s. Parficim had acquired 51% of the share- holding in M/s. Bharathi Cement Corporation Limited and the name of the company was changed to M/s. Bharathi Cement Corporation Private Limited. A perusal of Balance Sheet of Bharathi Cement Corporation Pvt. Ltd. for the year 2006-07 ....
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....nbsp; 2,50,00,000 11.04.2008 15.04.2008 Begumpet, Hyderabad 00040310006816 (New) 2,50,00,000 OBC, Jubilee Hills Hyderabad 16.04.2008 2,50,00,000 17.04.2008 2,50,00,000 21.04.2008 3,32,63,855 28.05.2008 3,00,00,000 02.06.2008 3,00,00,000 04.06.2008 3,00,00,000 18.07.2008 2,00,00,000 21.07.2008 2,00,00,000 23.07.2008 2,00,00,000 25.07.2008 2,00,00,000 27.01.2009 Bank of India, Mount Road, Chennai A/c 8000130110000007 10,00,00,000 29.01.2009 3,50,00,000 31.01.2009 7,50,00,000 12.01.2009 10,00,00,000 30.01.2009 SBH, Chennai A/c. No 52097613611 12,50,00,000 Total Amount 95,32,63,855 ii) Similarly, an amount of Rs. 40 Cr. was paid by M/s. India Cement Limted to M/s. Jagati Publication Ltd. on account of....
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....de in course of bona fide commercial transactions. 6. With respect to the investment made in M/s Bharati Cements Corporation Pvt Ltd, it has been pleaded by the Appellants that all investors actually made profits after sale to M/s PARCIFIM; and, therefore, allegations of undervaluation or quid pro quo in this regard are ex facie erroneous. It was also contended alleged that the allegations as to overvaluation and ante- dating of valuation reports with respect to M/s Jagati Publications Ltd. are completely baseless and erroneous. The premium fixed for the shares of M/s Jagati Publications Ltd. is based on sound commercial analysis, including cogent valuation. The premium fixed contemporaneously by other market participants would evince that the premium of M/s Jagati Publications Ltd. shares is justified. The record circulation achieved by the new paper "sakshi" as soon as it commenced its operations would evidently show the market capabilities of M/s Jagati Publications Ltd. 7. It was further pleaded by the Appellants that that all the investments/advances by M/s Carmel Asia Holdings Pvt Ltd, into M/s Janani Infrastructure Pvt Ltd. and M/s Indira Television Pvt Ltd. are genuin....
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.... to Rs. 1440/-. At the time, the par value of these shares was Rs. 10. After this acquisition, shares of the company were sold by Jagan Mohan Reddy and his associates at Rs. 671/- per share to a French Corporation called "PARFICIM SAS". 12. Admittedly, PARFICIM is neither accused of an offence in the CBI Charge Sheet, nor is it proceeded against under the Prevention of Money Laundering Act, 2002. 13. It was also alleged that the valuation of shares by PARFICIM at Rs. 671/- per share, the highest price paid (Rs. 1440/-) by India Cements for shares in Bharathi Cement, as also the fact that Bharathi Cement began commercial operations only on 28.09.2009, became of PMLA. 14. The allegations in the ECIR, PAO, and Complaint are that, the amounts held in Fixed Deposits by Bharathi Cement in Vijaya Bank, Road No. 12, Banjara Hills, Hyderabad totaling Rs. 95,32,63,855 is bribe money paid by India Cements in the guise of an investment. This amount is sought to be attached as "Proceeds of Crime". 15. The amount from India Cements came in three tranches, i.e.; (i) up till 31.03.2007 - Rs. 5 Crore; (ii) up till 31.03.2008 - Rs. 10 Crore; (iii) up till 31.03....
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....ts at the time the account in Vijaya Bank was opened was far less than the amounts originally received from India Cements and have been expended in the due course of business and are not available for attachment. 19. The following main submissions are made by the Senior Counsel appearing on behalf of Bharathi Cement: - i) SCHEDULED OFFENCES The offences under Sections 120B r/w Sections 420, 409, 420 & 4772-A of the IPC and Section 13(2) r/w Section 13(1) (c) & (d) of the PC Act were listed in the FIR against Bharathi Cement. However at the time of the alleged commission of the office (i.e. from 05.02.2007 to 30.01.2009), the Sections had not been notified as scheduled offences under the Prevention of Money Laundering Act, 2002 and were only notified vide notification dated June 1, 2009. ii) DOUBLE ATTACHMENT ii) While the sale proceeds of Rs. 121,08,26,678/- arising out of shares of Bharathi Cement by India Cements Limited to PARFICIM have been held to be proceeds of crime received by India Cements and have been attached vide PAO dated 25.02.2015 in OC. No.424/2015, the amount of Rs. 95,32,63,855/- invested by India Cements in Bharathi Cements has also been held to b....
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....virtue of any statutory liability or legal fiction? II. If not, whether petitioner/A-3-Srinivasan, other than of his status or position as Vice Chairman and Managing Director of India Cements Limited, be made personally liable for any acts and if so on what basis for the final report to accuse and for the learned special judge to take cognizance without specifying as to on vicarious liability or personnel liability? III. Whether the cognizance taken by the learned special judge without specifying as to on vicarious liability or personnel liability, is outcome of non-application of judicial mind and same is otherwise unsustainable for not reflecting any reasons or otherwise and is liable to be quashed? IV. To what result? All the above said points were decided in favour of the petitioner who filed the Criminal Petition No. 7584 of 2015. The operative part of the Judgement passed by the Hon'ble High in said para 53 of the judgement read as under: 53. Point No. IV: In the result the petition is allowed and the proceedings in CC No. 24 of 2013 from the cognizance of the offences under Sections 420 & 120B IPC & Section 12 of PC Act, taken by the Pr....
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....arathi Cement Group whereas on the same day India Cements Limited (A-7) had sold their stake 1803973 shares of Rs. 10/- each in M/s Bharathi Cements Corporation Limited at a total price of Rs. 121.00 crores to M/s PARFICIM, SAS, FRANCE. 23. During the course of the hearing, the learned counsel appearing on behalf of the respondent has stated that as far as the calculation of the Judgement of property is concerned this Appellate Tribunal has to give the final findings and incase the allegations against the appellants are proved in the complaint under the scheduled offence in Prevention of Money Laundering Act then the movable and immovable property would be vested with the state. Incase we go through the Judgement of Hyderabad High Court which is sub-judice before the Hon'ble Supreme Court, it would not be appropriate for us to give the final findings about the merits of the case as well as the clarification of the movable and immovable properties. 24. Under these circumstances, we are of the view that without going into the merit of the appeals and without expressing opinion about the rival submissions of the parties on merit, it would be appropriate to await the decision of ....