TaxTMI 
TaxTMI 
2024 (11) TMI 927
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....t, 2023 SCC OnLine SC 1486. The application preferred on behalf of co-accused Tarun Kumar was thereby dismissed: "3. The broad facts and events as discernible from the record may be stated as under: (i) M/s. Shakti Bhog Foods Ltd. (SBFL) was engaged in manufacturing and selling food items under the brand name of "Shakti Bhog". The company was managed through its Directors/Guarantors - Sh. Kewal Krishan Kumar, Sh. Siddharth Kumar and Smt. Sunanda Kumar. The appellant is the nephew of Sh. Kewal Krishan Kumar, and was shown as one of the employees in SBFL. (ii) The consortium of banks led by the State Bank of India vide the Letter of Engagement dated 18.05.2018 engaged the services of a Forensic Auditor - BDO India LLP for conducting the Forensic Audit of SBFL. (iii) The Forensic Auditor conducted audit review for the period 01.04.2013 to 31.03.2017 and submitted the report on 25.06.2019, disclosing several financial irregularities and discrepancies in the functioning of SBFL, and alleged that SBFL had failed to discharge its loan liability and caused loss to the consortium member banks to the tune of Rs. 3269.42 crores. (iv) An FIR being N....
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....nvestigation also revealed that Shri Kewal Krishan Kumar, Tarun Kumar, Siddharth Kumar (petitioner), Raman Bhuraria (CA) and others were involved in paper sale transaction without conducting any actual business transactions which resulted in false inflation of financials. The complex web of transactions is stated to have been created and borrowed funds were channelized through bank accounts of several Shakti Bhog entities and shell entities operated inter alia by Devki Nandan Garg and Ashok Kumar Goel. 5. As per Enforcement Directorate, 20 accused have been arrayed in proceedings including SBFL and the evidence against the petitioner has been highlighted in paragraphs 15 to 20 of reply dated 12.07.2023 as under: "15. Siddharth Kumar was not only Director/Promotor in Shakti Bhog Foods Limited (SBFL) but also an active Director in SBFL's group companies- Bhawna Portfolio Pvt. Ltd., Elanza Investment Pvt. Ltd., Sumesh Financers Pvt. Ltd., Goel Securities & Credits Limited, Divyarth Healthcare Pvt. Ltd. etc. That Siddharth Kumar was actively assisted in the day to day functioning of SBFL. Shareholding pattern and details of directorship of Siddharth Kumar in SBFL and its gr....
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....rth Leasing & Finance Pvt. Ltd. (3.28%) 4. Kalyani Finvest Private Limited.(0.36%) 5. Pancy Holdings Pvt. Ltd. (0.25%) 6. Dinkar Holding Pvt. Ltd. (19.60%) Vital Holdings Pvt. Ltd. 8. Dinkar Holding Pvt. Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0.62%) 2. K.D.M. Media Pvt. Ltd. (8 .52%) 3. Divyarth Leasing & Finance Pvt. Ltd. (0.23%) 4. Sumesh Financers Pvt. Ltd. (7.55%) 5. Pancy Holdings Pvt. Ltd. (42.28%) 6. Crest Agro Foods Ltd. (30.84%) 7. Shubhangi Finvest Pvt. Ltd. (53.02%) Dinkar Holding Pvt. Ltd. 9. Fruto Freesh Pvt. Ltd. 1. Kumar Food Industries Ltd. (4.22%) Fruto Freesh Pvt. Ltd. 10. Crest Agro Foods Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0.40%) 2. Divyarth Leasing & Finance Pvt. Ltd. (0.10%) 3. Elanza Investment Pvt. Ltd. (0.65%) 4. Kalyani Finvest Private Limited.(0.05%) 5. Phlox Investment Pvt. Ltd. (3.15%) - 11. Shubhangi Finvest Pvt. Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0 .61%) 2. KD.M. Media Pvt. Ltd. (9.20%) 3. Divyarth Leasing & Finance Pvt. Ltd. (7.80%) 4. Sumesh Financers Pvt. Ltd. (7 .55%) 5. Dinkar Holding Pvt. Ltd. (11 .10%) 6. Crest Agro Foods Ltd. (30.84%) 7. Dash....
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.... funds transferred into shell entities on basis of fake bills were either round tripped into bank accounts of SBFL to inflate turnover or further transferred into bank accounts of other dummy entities for layering of funds or transferred into sister concern of SBFL without any actual business. On being asked I want to state that these paper transactions were done on instructions of KK Kumar & Siddharth Kumar. Raman Bhuraria used to aid and advise in these transactions. I want to state that these paper transactions were done in assistance of Tarun Kumar, Sandeep Mishra, Vijay Malhotra, Anshu Gautam & myself." These statements found reverberations in the statements of Sandeep Mishra, Manager Accountant (SBFL), Avik Das, Vijay Malhotra, CFO and Ashok Kr. Goel, Entry Operator recorded u/s50 of PMLA, 2002. 19. That Siddharth Kumar managed and controlled export business of SBFL with its Dubai Based overseas subsidiary - M/s Shakti Bhog, FZE but out of the goods exported to this company, export proceeds worth Rs.150 Crore were not reported in the books of accounts of SBFL, nor were the same repatriated back to India. It is further submitted that statement of Jagdeep Vashist, Employee o....
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....ry for purpose of receiving refunds in the aforesaid sister concerns. Petitioner is also stated to be a beneficiary of about Rs.11.32 crores of the proceeds of crime. The amounts were transferred from M/s Shakti Bhog Foods Ltd. ('SBFL') to Vizzy Finvest Pvt. Ltd and Elanza Investments Pvt. Ltd. unauthorisedly, wherein the petitioner is an Authorised Signatory. The amounts are further stated to have been transferred from Vizzy Finvest Pvt. Ltd and Elanza Investments Pvt. Ltd. to M/S S.R. Foils and Tissue Ltd. 7. It may also be noticed that the prosecution complaint was initially filed by Enforcement Directorate on 01.09.2021, and the third supplementary prosecution complaint was filed on 18.08.2022 inter alia arraying the petitioner as an accused. Contentions on behalf of the petitioner 8. Learned counsel for the petitioner submits that the petitioner was involved with domestic marketing and in the Export Division of M/s Shakti Bhog Foods Ltd., through a company named Shakti Bhog FZE operating out of Dubai. Further, various documents were signed by the petitioner at the behest of his father Kewal Krishan Kumar. The allegations regarding alleged fraud and money laundering ar....
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....006 SCC OnLine Del 1484 and Sanjay Jain v. Enforcement Directorate, Bail Appln. 3807/2022 decided on 07.03.2024. Written submissions were also filed on record. Contentions on behalf of Enforcement Directorate 10. On the other hand, application is vehemently opposed by Shri Zoheb Hossain, Special Counsel for Enforcement Directorate. At the outset, he points out that role of the petitioner is graver than co-accused Tarun Kumar, whose bail application stands rejected by the Hon'ble Apex Court. Petitioner is stated to be son of Kewal Krishan Kumar, who was the main Promoter and Managing Director of SBFL, while Tarun Kumar was the Vice President of SBFL and nephew of Kewal Krishan Kumar. The averments raised by the petitioner with reference to the status of petitioner in predicate offence, parity with co-accused Raman Bhuraria (CA) who was granted bail by this Court and delay in completion of trial are stated to have also been raised by co-accused Tarun Kumar, whose bail application was rejected. It is pointed out that Hon'ble Apex Court upheld the admissibility of Section 50 PMLA and the statements of the witnesses recorded therein and points out that material evidence against th....