TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 1464
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.... of India, Burrabazar Branch, Kolkata and Shri K.N. Mondal, thethen Senior Manager, Central Bank of India, Burrabazar Branch, under Sections 120B IPC read with Section 420, 409, 468, 471, 477A IPC and Section 13(2) read with Section 13(1)(c) and (d) of the Prevention of Corruption Act, 1988, in respect of alleged fraudulent transactions through the Cash Credit account of M/s. Kali International Pvt. Ltd., resulting in wrongful loss to the Central Bank of India, Burrabazar Branch, Kolkata, to the tune of Rs. 72.44 crores, as on 28.02.2009. 4. The second complaint, on the basis whereof, Case no. RCBSK2009E0005 was registered was filed against Sri Ashok Kumar Gupta, Sri Rajendra Kumar Gupta, Sri Ramesh Kumar Gupta, Smt. Imerti Devi Gupta (since deceased), Partners of M/s. Rajco Steel Enterprises and Sri R.S. Sahoo, the-then Assistant General Manager, Central Bank of India, Burrabazar Branch, Kolkata and Shri K.N. Mondal, the-then Senior Manager, Central Bank of India, Burrabazar Branch, under Sections 120B IPC read with Sections 420, 409, 468, 471, 477A IPC and Section 13(2) read with Section 13(1)(c ) and (d) of the Prevention of Corruption Act, 1988, in respect of alleged fraudulen....
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....ppellant that Ramesh Kumar Gupta was neither a director nor a shareholder in the appellant company and in as much as the sole premise of the entire exercise was that Ramesh Kumar Gupta had an office in the appellant company, it was incumbent of the part of the respondent to prove the same and on the part of the Adjudicating Authority to assess the same. The respondent had miserably failed to substantiate the same through any cogent corroborative evidence and the requisite exercise on the part of the Adjudicating Authority being conspicuously absent, the impugned order is vitiated on account thereof. In fact, the Adjudicating Authority ought to have drawn adverse inference against the respondent for failing to corroborate such assertion. 10. Section 17 of PMLA, 2002 reads as under: "17 Search and seizure. -(1) Where [the Director or any other officer not below the rank of Deputy Director authorised by him for the purposes of this section,] on the basis of information in his possession, has reason to believe (the reason for such belief to be recorded in writing) that any person - (i) has committed any act which constitutes money-laundering, or (ii) is in possession of any pro....
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....ion (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 may, for reasons to be recorded in writing, enter and search the building or place where such evidence is located and seize that evidence. Provided that no authorization referred to in subsection (1) shall be required for search under this subsection. (4) The authority seizing any record or property under sub-Section (1) or freezing any record or propert....
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.... 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 sub-section (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 on the list. (8) No female shall be searched by any one except a female. (9) The Authority shall record the statement of the person searched under sub-section (1) or sub-section (5) in respect of the records or proceeds of crime found or seized in the course of the search:18 [***] (10) The authority seizing any record or property under sub-section (1) s....
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....he 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 subsection (5) or sub-section (6) or sub-section (7) of section 8 or section 58B or sub-section (2A) of section 60] , the Adjudicating Authority shall direct the release of the records to the person from whom such records were seized. (6) Where an order releasing the records has been made by the Court [Adjudicating Authority under section (5) of section 21] the Director or any other officer authorised by him in this behalf may withhold the release of any such record for a period of ninety days from the date of (receipt of] such order, if he is of the opinion that su....