TaxTMI 
TaxTMI 
2024 (3) TMI 76
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....the National Green Tribunal in O.A. No. 150/2021 pertaining to the same alleged transactions/questions which have formed the basis of impugned proceedings launched by the police as well as the Enforcement Directorate: B. Direct and ensure that:- i. The officers of Respondent No. 6 Enforcement Directorate must remain within the circumscribed limits as mandated under Sub-Section (2) of Section 66 of the Prevention of Money Laundering Act, 2002 and "share the information with the concerned agency for necessary action" in the event of forming opinion "on the basis of information or material in his possession that the provisions of any other law for the time being in force are contravened" and nothing beyond; ii. Prohibit and restrain Respondent No. 6 (Enforcement Directorate) from prompting. compelling, forcing any authority to lodge criminal case(s) against any person or entity as contemplated under Section 2(1)(s) of the Prevention of Money Laundering Act, 2002 as any such act would tantamount to blatant illegality, arbitrariness and thus unconstitutional. C. Quash and set aside the communication F. No. ECIR/GNZO/19/2023/5405 dated 15.1.2024 (recei....
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.... petitioner, at length, and also go through the bulky petition and briefly the counsel representing the Enforcement Directorate, and its analysis would lead to the following outcome. 3. Respondent No. 7-Enforcement Directorate has registered ECIR/GNZO/19/2023 based on the predicate offences, which reads as under: S. No. FIR Schedule Offence 1. 0226 dt. 14.10.2022 Sections 120-B & 420 of Indian Penal Code, 1860 2. 0116 dt. 23.03.2023 Sections 120-B, 411, 420 of Indian Penal Code, 1860 3. 0111 dt. 01.06.2023 Sections 420, 467 & 471 of Indian Penal Code, 1860 4. 0206 dt. 19.09.2022 Section 420 of Indian Penal Code 5. 0216 dt. 30.09.2022 Section 471 of Indian Penal Code, 1860 6. 0204 dt. 14.09.2022 Sections 120-B & 420 of Indian Penal Code, 1860 7. 0033 dt. 10.02.2023 Sections 420, 467 & 471 of Indian Penal Code, 1860 8. 0054 dt. 16.02.2023 Sections 420, 467 & 471 of Indian Penal Code, 1860 4. As per the petition and the arguments addressed, the petitioner's case is that on 19.5.2015, the petitioner claims to form a firm, M/s Mubarikpur Royalty Company, set up with a partner(s). On 19....
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....stion from it. The firm has since preferred an Appeal against this termination, pending before the Appropriate Authority.[P7]. On 19.7.2022, NGT took on record the report of the Monitoring Committee, issued notice & asked the firm to file a reply. Vide order dated 18.11.2022 [P-9], the NGT imposed a penalty on the petitioner's firm. On 13.2.2023, Hon'ble SC in Civil Appeal preferred by the firm has been pleased to issue notice & pass the conditional stay order. The matter is sub-judice before the Hon'ble Supreme Court - the next date of hearing is 12.4.2024. [P10]. 5. After that, the FIRs were registered in the District of Yamuna Nagar against several accused persons, including Dilbagh Singh. Based on the predicate offenses in the said FIRs as Scheduled/Predicate offenses, the Enforcement Directorate [ED] registered ECIR/GNZO/19/2023. 6. On 4.1.2024, ED searched the premises of M/s Mubarikpur Royalty Company and the petitioner's residence & seized certain documents & registers maintained by the firm. [P11 & P-12] 7. Mr. Vikram Chaudhary, Ld. Sr. Advocate submits that on 15.1.2024, respondent No. 7 Joint Director ED sent a communication to the Superi....
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....otect) Acts related regulations. Such proceeds earned out of illegal unscientific mining has been routed through various dummy entities in fictitious names, depositing huge cash in those entities and layering of such money into their personal bank accounts related companies/entities etc. Related persons/entities are involved in money laundering and are in possession of proceeds of crime or records/ property related to money laundering. 7. In view of the above, it is clear that entities namely M/s. Delhi Royalty Company, M/s. Mubarikpur Royalty Company, M/s. Development Strategies (India) Pvt. Ltd, JSM foods Pvt. Ltd and PS Buildtech and persons namely Dilbag Singh, Rajinder Singh, Kulwinder Singh (PS Buildtech), Manoj Kumar Wadhwa, Angad Singh Makkar, Gurpartap Singh Mann, Raman Ojha, Rajesh Chikara, Inderpal Singh, Naseeb Singh, Nirmal Roy, Mukesh Bansal, Ranbir Singh Rana, in connivance with others were involved in rampant illegal and unscientific mining in the mines allotted to them, violating Mines and Minerals (Development and Regulation) Act, damage to the environment in contravention to Sections 6, 7, 8, 15 and 16 of the Environment Protection Act, 1986 and provisio....
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....d of a minimum of thirty days or more and pecuniary penalty and punishment for the offense as provided under Section 21 of the Mines & Minerals (Development & Regulation) Act, 1957 happen. Therefore, under no circumstances could the Police record an FIR. 11. It shall be appropriate to refer the relevant provision of the Prevention of Money Laundering Act, 2002 [PMLA], reads as follows: [2(u)] "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property or where such property is taken or held outside the country, then the property equivalent in value held within the country or abroad; Explanation.-For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence; [2(y)] "scheduled offence" means- (i) the offences specified under Part A of the Sched....
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....ormation received or obtained by such Director or any other authority, specified by him in the performance of their functions under this Act, as may, in the opinion of the Director or the other authority, so specified by him, be necessary for the purpose of the officer, authority or body specified in clause (i) or clause (ii) to perform his or its functions under that law. (2) If the Director or other authority specified under sub-section (1) is of the opinion, on the basis of information or material in his possession, that the provisions of any other law for the time being in force are contravened, then the Director or such other authority shall share the information with the concerned agency for necessary action. 12. An analysis of this argument ignores the material aspect that the primary offenses registered in the above captioned FIR are under 120-B & 420 IPC, which are cognizable. In addition to the offenses of 420 IPC being cognizable, it does not even require any prior sanction in the case of the petitioner, who is not a public servant. There is no violation of Section 66 of PMLA. Thus, despite a lengthy submission, the fundamental point is short, and....
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.... view of the above, it is clear that entities namely M/s. Delhi Royalty Company, M/s. Mubarikpur Royalty Company, M/s. Development Strategies (India) Pvt. Ltd, JSM foods Pvt. Ltd and PS Buildtech and persons namely Dilbag Singh, Rajinder Singh, Kulwinder Singh (PS Buildtech), Manoj Kumar Wadhwa, Angad Singh Makkad, Gurpartap Singh Mann, Raman Ojha, Rajesh Chikara, Inderpal Singh, Naseeb Singh, Nirmal Roy, Mukesh Bansal, Ranbir Singh Rana, in connivance with others were involved in rampant illegal and unscientific mining in the mines allotted to them, violating Mines and Minerals (Development and Regulation) Act, damage to the environment in contravention to Sections 6, 7, 8, 15 and 16 of the Environment Protection Act, 1986 and provisions of Section 120-B, 420 of IPC, 1860 8. The above information is being shared with you under Section 66(2) of the PMLA, 2002 for necessary action at your end. Encl. As above. Sd/- Navneet Agrawal, Joint Director, Gurugram Zonal Office, Enforcement Directorate." Copy of FIR 0021 dated 19.1.2024 is annexed as ANNEXURE P-15. Attack on petitioner's family and threat of extortion by....
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....t Strategies (India) Pvt. Ltd, guilty of violation of environmental norms and doing illegal mining and penalised as well. It is pertinent to mention that Development Strategies India Private Limited was allotted 23.05 hectares at Pobari village in Yamunanagar's Radaur block for the mining of boulders, gravel and sand for nine years. The mining lease order started its production at the site on 09.12.2016. Delhi Royalty Company was allotted a 13.59-hectare site at Kohliwala village in Chhachhrauli Tehsil, Yamuna Nagar District, for the mining of boulders, gravel and sand. The lease period was for eight years. The mining order started its production at site on 11.08.2016. Mubarikpur Company was allotted 28 hectares at Bailgarh village in Chhachhrauli Tehsil, Yamuna Nagar District, for a period of nine years. The mining lease order started its production at the site on 09.12.2016. Based on the observations of the Monitoring Committee established the Hon'ble NGT, the Hon'ble Tribunal has passed an order dated 18.11.2022 (copy enclosed) in respect of Delhi Royalty Company, Mubarikpur Royalty Company and M/s Development Strategies (India) Pvt. Ltd, as under: "6. We fi....
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....el but we consider it appropriate to give specific direction that till further orders no mining of boulder and gravels shall be carried out on the mining sites in question by the respondents no. 7 and 8....... 3. Further, on the basis of Information in possession of this office wherein it was found that illegal mining and unscientific mining was carried out on rampant scale in the respective mines allotted to M/s. Delhi Royalty Company, M/s Mubarikpur Royalty Company and M/s. Development Strategies (India) Pvt. Ltd (as discussed above) and in order to gather further evidence of persons involved in money laundering and record of proceeds of crime, Searches u/s 17 of PMLA were conducted on 04.01.2024 on the premises of M/s. Delhi Royalty Company, M/s. Mubarikpur Royalty Company, M/s. Development Strategies (India) Pvt. Ltd, JSM foods Pvt. Ltd and PS Buildtech and its partners and directors. 4. Apart from above persons, on the basis of information in possession of this office, Searches were also conducted at the residential premises of the Directors of M/s JSM Foods Pvt. Ltd, and business premises of PS Buildtech. During the search, various incriminating documents ha....
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....lved in the commission of the offense of money laundering as defined under section 3, PMLA in connivance with other related entities and persons. Further, the Petitioner's firm, M/S Mubarikpur Royalty Company, is expressly named in FIR NO. 226 dated 14.10.2022 registered at the P.S. Yamuna Nagar District Haryana under Sections 120-B & 420 of the Indian Penal Code, 1860, which is one of the scheduled offenses for the recording of ECIR/GNZO/19/2023. The other FIR which are part of the scheduled offense are as follows- S.No. FIR Schedule Offence 1. 0226 dt. 14.10.2022 Sections 120-B & 420 of Indian Penal Code, 1860 2. 0116 dt. 23.03.2023 Sections 120-B, 411, 420 of Indian Penal Code, 1860 3. 0111 dt. 01.06.2023 Sections 420, 467 & 471 of Indian Penal Code, 1860 4. 0206 dt. 19.09.2022 Section 420 of Indian Penal Code 5. 0216 dt. 30.09.2022 Section 471 of Indian Penal Code, 1860 6. 0204 dt. 14.09.2022 Sections 120-B & 420 of Indian Penal Code, 1860 7. 0033 dt. 10.02.2023 Sections 420, 467 & 471 of Indian Penal Code, 1860 8. 0054 dt. 16.02.2023 Sections 420, 467 & 471 of Indian Pe....
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....e of Respondent No. 11. further violations are not installing boundary pillars, continuing mining even after termination of the lease, using groundwater transported through tankers instead of using treated sewage water. With regard to Respondent No. 13. apart from other violations which are common with Respondent No. 11, the said PP was found crossing the prescribed depth for mining. 7. In view of above serious violations, accountability has to be determined for such violations on polluter pays principle for restoring the damage to the environment. Compensation has to be fixed having regard to the nature of violations, period of violation, cost of restoration and financial capacity of the PPs in view of principles laid down..... 8. Though as per Common Cause, compensation in case of illegal mining can be equal to the value to the mined material, apart from compensation for violation of environmental norms. we fix the same @ 10% of the lease money ie. Rs. 2.5 crore. Rs. 4.2 crore and Rs. 12 crores in respect of Respondents No. 11 to 13 respectively. The amount may be deposited within one month with the State PCB which is to be utilized for restoration of the enviro....
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....urisdiction and proper and due application of mind. Viewed from any perspective, the FIR is a stillborn child; it is now well settled that if the FIR or the Scheduled/Predicate Offence does not survive, the proceedings under PMLA will cease to exist. The summons has been issued to the petitioner to appear in person, but he has already been explicitly nominated as an accused in the FIR, which the ED has lodged. Thus, the ED, as Complainant in the police case, is calling the petitioner an accused but is now asking him to come and appear under Section 50 PMLA, which is merely an inquiry, and a person does not have the protection of Article 20(3) not to self-incriminate or to remain silent and the protection of Section 25 of Indian Evidence Act until he is formally made as an accused in PMLA case. In the wake of the above, once the petitioner has been made an accused by the ED itself in the FIR, it cannot be countenanced that he will be asked to appear in person in terms of Section 50 PMLA, which contemplates obligation on the person to attend as directed; to state the truth and the proceedings before the ED officer would be a "judicial proceeding." The whole context of Section 5....