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TaxTMI 
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2023 (10) TMI 1219
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....omplaint being filed on 7th of December, 2022. The accusations made against the present petitioner along with M/s Acuere Consultancy Services and M/s. Educlasses Online are as follows: "2. Shri Souvik Bhattacharya (A-10), D.O.B- 23.02.1989, S/o- Shri Manik Bhattacharya, R/o-26S, Jadavpur East Road, 1st Floor, Kolkata-700032: Shri Souvik Bhattacharya was actively involved in assisting his father Shri Manik Bhattacharya in acquisition, possession, concealment and laundering the proceeds of crime acquired by Shri Manik Bhattacharya out of his corrupt and criminal activities relating to schedule offences under PMLA. Shri Manik Bhattacharya being the president of West Bengal Board of Primary Education has abused and misused his high official position and in pursuance thereof he compelled 530 self-financed D.El.Ed Colleges to give him an amount of Rs. 50,000/- per institute. In order to launder the said extorted money, Shri Souvik Bhattacharya in connivance with Shri Manik Bhattacharya, formed a proprietary concern namely M/s Acuere Consultancy Services In his name and arranged an agreement vide dated 02.10.2018 between the said firm and Bengal Teachers Training Colleges Associat....
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....of himself and his one of the relative Shri Debabrata Mukherjee. . Further, Shri Souvik Bhattacharya operated those accounts by showing himself as secondary holder but the said bank accounts was completely under his control and use. As such Shri Souvik Bhattacharya was involved in the acquisition, use, possession, and concealment of proceeds of crime with the assistance of other accused persons and entities. Thus, the accused person has committed the offence of Money Laundering as defined under section 3 of PMLA and is, therefore, liable to be punished under section 4 of PMLA, 2002. Aforesaid acts committed by him are covered by the definition of offence of money-laundering. In addition to that, Explanation to Section 3 of PMLA also provides that "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". As revealed from the facts of the case, he continued to be involved in processes and activities conne....
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....scheduled offence under PMLA, 2002 This business entity was solely used in the acquisition, use, possession, and concealment of proceeds of crime with the assistance of other accused persons and entities. Thus, it has committed the offence of Money Laundering as defined under section 3 read with section 70 of PMLA, 2002 and is, therefore, liable to be punished under section 4 of PMLA, 2002. 5. M/s Educlasses Online (A-13) (Represented through its proprietor Shri Souvik Bhattacharya), At:- 26 S Jadavpur East Road, 1st Floor, Kolkata-700032: M/s Educlasses Online is the proprietary concern of Shri Souvik Bhattacharya (14-10) which was formed solely for the purpose to launder the proceeds of crime generated/derived out of the criminal activity relating to the scheduled offences under PMLA. Shri Manik Bhatracharya (A-9) being the president of West Bengal Board of Primary Education has abused and misused his high official position and in pursuance thereof he compelled the students of the D.El.Ed Colleges and/or the D.El.Ed colleges to give him an amount of Rs. 500/- per student of all the D.El.Ed Colleges in guise of arranging online classes to the students of D.El.Ed. colleges....
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.....3.2023 rejected the prayer of the petitioner assigning its grounds. Mr. Saha, learned Senior Advocate, appearing for the petitioner emphasized the issues relating to the period of detention, the innocence of the accused, bank accounts of the petitioner being already mapped by the investigating agency and the funds already being seized by the investigating agency in course of investigation. It has also been submitted that the petitioner is cooperating with the investigating agency and made himself available as and when called for in course of the investigation. It has further been stressed that the petitioner was never arrested nor the power under Section 19 of the PMLA Act was exercised by the investigating agency in course of the investigation. Learned Senior Advocate in order to substantiate the arguments relied upon the observations made in Satarupa Bhattacharya -vs- Enforcement Directorate reported in 2023 SCC OnLine Cal 2273 as also the judgement of the Hon'ble Supreme Court in Pankaj Banshal -vs- Union of India & Ors. reported in 2023 SCC OnLine SC 1244. Mr. Edulji, learned Advocate for the E.D., opposed the contention of the petitioner and stressed on the complicity an....
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.... and acquiring the funds which were obtained by the said Manik Bhattacharya while he was discharging his duties as the President of the West Bengal Board of Primary Education and the proceeds collected, which is being investigated in the alleged Teachers Recruitment Scam. The thrust is on the factum of the complicity of the present petitioner so far as the proceeds of crime is concerned. At the initial stage when the argument commenced and the Enforcement Directorate prayed for filing their affidavit, this Court directed to clarify whether any policy has been adopted by the Investigating Agency so far as the exercise of the powers under Section 19 of the PMLA is concerned. In paragraph 54 of the affidavit-in-opposition the Enforcement Directorate categorically stated that they have not adopted any parameters for invoking the powers under Section 19 of the PMLA and the same would depend on the facts and circumstances of the case. There were no cogent reasons assigned by the Investigating Agency which in the background of the present case satisfies the conscience of the Court regarding the exercise of such powers. Towards the end of the hearing, it was pointed out by the Enforcemen....