AI Drafter 
TaxTMI 
TaxTMI 
2023 (7) TMI 957
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....the borrowings. 2. The SBFL was engaged in manufacturing and selling food items like wheat flour, rice, biscuits, cookies, dalia, gram flour, maida etc. under the established and well-known brand name of 'Shakti Bhog.'The company was managed through its Directors / Guarantors - Sh. Kewal Krishan Kumar, Sh. Siddharth Kumar and Smt. Sunanda Kumar. SBFL had around 250 regular employees. It is stated that the applicant was one such employee and was drawing renumeration as an employee. 3. An Investigation revealed that a bank fraud was committed by the active involvement of the Managing Directors, Directors and Guarantors of SBFL. Subsequently, in 2020, FIR No. RC0742020E0014 was registered by the CBI, Bank Securities & Fraud Cell, New Delhi on the basis of written complaints of bank officials against the SBFL and its Managing Director - Mr. Kewal Krishan Kumar, and its directors / guarantors - Mr. Siddharth Kumar and Mrs. Sunanda Kumar and unknown public servants, and other unknown persons for commission of offences u/s 13(2) r/w 13(1)(d) of Prevention of Corruption Act,1988 and u/s 120B r/w 420, 465, 467, 468 and 471 of IPC, 1860 4. During the course of the investigation the ....
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....o active involvement or role in the management of affairs of the SBFL. It is stated that the role of Applicant was limited to making purchases of raw and other ancillary materials for SBFL and especially only for wheat related purchases. 10. It is stated by the applicant, that Applicant was a mere shareholder and a director but was also not involved in any management or decision making. The Applicant was made a Director only for the purpose of meeting the quorum requirements under the Companies Act. Moreover, the Applicant has never drawn any salary, remuneration, incentive, perks whatsoever as a director which further substantiates that the Applicant has never acted in the capacity of a Director. 11. Applicant was not arrayed as an Accused in the ECIR or first three Complaints, neither was named in the FIR and was never summoned by CBI. 12. It is submitted that ED itself stated that the Applicant was made Director of group companies only to comply with quorum requirements under Companies Act. In order to complete the quorum some of the employees have also been made directors in the companies. ED also admitted that SBFL was managed through its main Directors and promoters ....
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....naging Director of SBFL. The accused was also the Vice President (Purchases) from 2009 -17 in SBFL and the authorized signatory of bank accounts of two sister concerns of SBFL, unlike all other persons with whom he claims parity, who were merely employees of the company. 21. As a result, a) the statements under section 50 PMLA of various employees of SBFL b) documents seized during investigation which contained signatures of applicant relating to transactions with fake entities. c) The loan funds which were siphoned off to various entities, in which the applicant is either Director or shareholder; makes it broadly probable that the applicant was actively involved with the process and activity relating to siphoning of the proceeds of crime. Analysis 22. I have heard both the parties. 23. Section 45 of the PMLA reads as under: (1) [Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), no person accused of an offence[under this Act] shall be released on bail or on his own bond unless--] (i) the Public Prosecutor has been given a opportunity to oppose the application for such release; and ....
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....r is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely:-- (a) concealment; or (b) possession; or (c) acquisition; or (d) use; or (e) projecting as untainted property; or (f) claiming as untainted property, in any manner whatsoever; (ii) the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever.]" 27. The role of the applicant has been highlighted in the 4th supplementary chargesheet. The SBFL group was nothing but a family-run business wherein the applicant was employed as Vice President (Purchases) between the years 2009 to 2017. 28. The role of the applicant can be ascertained from the various statements, emails and invoices. Investigations revealed that emails from and related to the shell entities (such as -M/s Lachhu Ram Aggarwal & Co. M/s Annpurna Trading Company. M/s Ganesh....
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....5. Apart from fake invoices, fake transport invoices for these LCs were arranged under the applicant and others. Investigations revealed that total payment of Rs 342.05 crores (Rs. 111.26 crores in the form of L/C and Rs. 229.79 crores in the form of direct payments made from bank accounts) were made to 05 vendors of SBFL. On verification of (TAN and PAN) numbers of these vendors and their transporters, 02 of these vendors were found having invalid TAN and PAN of the non-existent transporters. Truck numbers mentioned on transport challan were also not found real trucks but different Class of vehicles. It was observed that 54 of the vehicle numbers mentioned were registered as two wheeler (Bajaj Chetak, Royal Enfield Bullet, Honda Activa etc.), ambulance, school bus, low capacity transport vehicle etc. purporting to be carrying goods of weight ranging from 250-310 quintals. Transporters (Kamal Trading & Maa Durga Road lines) through which it operated do not exist at the address provided in its transport challan. 36. Statement of Sandeep Mishra under section 50 reveals that the transport was done under the applicant: "I used to collect fake invoices from entry operators; ....
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....ructions of Tarun Kumar. I want to further state that Tarun Kumar used to coordinate with entry operators for purchasing fake bills and he was in complete knowledge about accommodation entries provided by entry operators to SBFL through their shell entities" b) Mr. Anshu Gautam (Asst. Manager, SBFL) in his statement dated 02.07.2022 stated "I want to further state that Tarun Kumar in assistance of Sandeep Mishra used to coordinate with entry operators to receive fake invoices/transportability." c) The Statement of Vivek Prasad (he was an accommodation entry provider) Mr. Vivek used to provide fake bills to SBFL for commission and the money was transferred to one of the many dummy companies of Mr. Vivek, which was further given back in cash to Applicant. In this way, he collected Rs. 58.06 Crore in cash from shell entities operated by Vivek Prasad and Ashok Kumar Goel. Having asked by you, I am to state that the fund received from M/s Shakti Bhog Foods Limited was either return back to Sri Tarun Kumar in cash after withdrawing it from sister concerns by me. d) The statement dated 30.06.2022 of Mr. Ewin Ahuja (Employee SBFL) was recorded. ....
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....hat there are reasonable grounds for believing that the appellant is not guilty of such offence. Further, the courts below have justly adverted to the antecedents of the appellant for considering the prayer for bail and concluded that it is not possible to hold that the appellant is not likely to commit any offence ascribable to the 2002 Act while on bail. Since the threshold stipulation predicated in Section 45 has not been overcome, the question of considering the efficacy of other points urged by the appellant to persuade the Court to favour the appellant with the relief of regular bail will be of no avail. In other words, the fact that the investigation in the predicate offence instituted in terms of FIR No. 205/2016 or that the investigation qua the appellant in the complaint CC No. 700 of 2017 is completed; and that the proceeds of crime are already in possession of the investigating agency and provisional attachment order in relation thereto passed on 13-22017 has been confirmed; or that charge-sheet has been filed in FIR No. 205/2016 against the appellant without his arrest; that the appellant has been lodged in judicial custody since 2-1-2017 and has not been interrogated ....
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....oney laundering. The statements have not been retracted. 47. The judgment of Raman Bhuraria (supra) is not applicable to facts of the present case. Firstly, unlike Raman Bhuraria who was an internal auditor of SBFL (for a brief period statutory auditor of SBFL), the applicant is the Vice President of Purchases. As a a Vice president, he was responsible for the day-to-day operations of the company. Secondly, the applicant's role is also made out from the financials, where direct loan funds have been siphoned off to sister concerns of SBFL where applicant is either a shareholder or director. 48. In the light of these documents and material facts I cannot hold that that the applicant is not guilty of the offense of money laundering. 49. For the said reasons, the application for bail of Mr. Tarun Kumar is dismissed. 50. Nothing stated hereinabove shall tantamount to an expression of opinion on the merits of the case and have been made only for the purpose of deciding this bail application. 51. The application along with pending application(s), if any, are disposed of accordingly. ============= Document 1 From: Sent: To: Cc: Subject: Attachments: ....
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....ices p ltd 500000 J. R. Laddha Financial Services p ltd 500000 J. R. Laddha Financial Services p ltd 454835 J. R. Laddha Financial Services p ltd Warm Regards, SHAKTI BHOC Ewin Ahuja Shakti Bhog Foods Ltd. Regd. Office: 403-406, 4th Floor Krishna Apra Business Square | Netaji Subhash Place, New Delhi-110034 | Indial Phone: 91-11-47526262 | Fax No. 47056499. Cul 1/2122 Connect to us on-www.facebook.com/MYDIVSS and www.facebook.com/SHAKTIBHOG Website-www.mydivss.com DISCLAIMER The formation contained in this electronic message and any attachments thereto are intended for the exclusive use of the addressee(s) and may contain proprietary confidential or privileged information of Shakti Bhog Foods Limited or its subsidiaries and associated companies (Collectively "Shakti Bhog"). If you we not the intended recipient, you should not disseminale, distribute or copy this e-mail. Please notify the sender Immediately and destroy all copies of this message and any stacles WARNING: Computer viruses can be transmitted via email. The coniphity accepts no liability for any damage caused by any virus ireasmined by this end B....