AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 476
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....ctions 13(2) read with 13(1) of PC Act in relation to allegations that Sterling Group of companies and the Sandesara Group were involved in giving bribes to various public officials in the period between the period 2005 to 2011 for obtaining tenders for supply of goods, granting of loans by banks and financial instituitions. b) Sandesara Group was acting as depository for receiving funds on behalf of public servants. c) Person who was maintaining diaries of 2011 was identified as one Shri Ajay Panchal whose statement was recorded on 01.09.2017 - 03.09.2017 whereby it was gathered that Angadias were involved in transfer of suspected proceeds of crime from Vadodara to Delhi between "Sterling Biotech Limited and various individuals/entities based in Delhi". One such Angadia is the appellant herein. d) ECIR/HQRS/15/2017 dated 31.08.2017 was lodged on the basis of the FIR. e) On the basis of this statement, premises of appellants were searched on 04.09.2017 and properties were seized. 6. The allegations against the appellants are that: a) The appellants‟ services were used to transfer funds from Sandesara Group to certain public officials. As such, there is not even an ....
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....operty involved in money laundering as there is no allegation qua the generation of proceeds of crime which is essential to establish the offence of money laundering. 11. In the reply to preliminary objections, it is submitted by the respondent that the appellant has an alternative statutory redressal available by way of Section 8(8) of PMLA which allows for release of property even during the trial. 12. Section 17 mandates that the Investigating Agency must record its reasons to believe in writing that the property being seized is involved in the offence of money laundering or is related to a crime. No such reason to believe have been recorded or forwarded to the Adjudicating Authority or provided to the appellant at any stage during the proceedings. 13. In the impugned order wherein it is stated that "it may be that some relevant record, entries or material may be existing in the records/material, which may link or indicate money laundering activities. At present the material seized on reasonable belief that the respondent may be in possession of any record relating to money laundering. 14. Section 17 of PMLA, 2002 reads as under: "17 Search and seizure. -(1) Where [the Dir....
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....officer authorised under sub-section (1), may make an order to freeze such property whereupon the property shall not be transferred or otherwise dealt with, except with the prior permission of the officer making such order, and a copy of such order shall be served on the person concerned: Provided that if, at any time before its confiscation under sub-section (5) or sub-section (7) of Section 8 or Section 58B or sub-Section (2A) of Section 60, it becomes practical to seize a frozen property, the officer authorised under sub-Section (1) may seize such property.] (2) The authority, who has been authorized under sub-section(1) shall, immediately after search and seizure [or upon issuance of a freezing order] forward a copy of the reasons so recorded along with material in his possession, referred to in that sub-section, to the Adjudicating Authority in a sealed envelope, in the manner, as may be prescribed and such Adjudicating Authority shall keep such reason and material for such period, as may be prescribed. (3) Where an authority upon information obtained during survey under section 16, is satisfied that an evidence shall be or is likely to be concealed or tampered with, he ....
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....e the time necessary for the journey undertaken to take such person to the nearest gazetted officer, superior in rank to him, or Magistrate's Court. (4) If the requisition under sub-section (3) is made, the authority shall not detain the person for more than twenty-four hours prior to taking him before the Gazetted Officer superior in rank to him, or the Magistrate referred to in that sub-section: Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of detention to the office of the Gazetted Officer, superior in rank to him, or the Magistrate's Court. (5) The Gazetted Officer or the Magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge such person but otherwise shall direct that search be made. (6) Before making the search under sub-section (1) or subsection (5) the authority shall call upon two or more persons to attend and witness the search, and the search shall be made in the presence of such persons. (7) The authority shall prepare a list of record or property seized in the course of the search and obtain the signatures of the witnesses ....
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.... any inquiry under this Act, such records may if seized, be retained or if frozen, may continue to remain frozen, for a period not exceeding one hundred and eighty days from the day on which such records were seized or frozen, as the case may be. (2) The person, from whom records seized or frozen, shall be entitled to obtain copies of records. (3) On the expiry of the period specified under sub-section (1), the records shall be returned to the person from whom such records were seized or whose records were ordered to be frozen unless the Adjudicating Authority permits retention or continuation of freezing of such records beyond the said period. (4) The Adjudicating Authority, before authorising the retention or continuation of freezing of such records beyond the period specified in sub-section (1), shall satisfy himself that the records are required for the purposes of adjudication under section 8. (5) After passing of an order of confiscation [or release under sub-section (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or subsection (2A) of section 60] , the Adjudicating Authority shall direct the release of the records to the person from whom such re....