TaxTMI 
TaxTMI 
2025 (6) TMI 17
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....Sindh Bank Rs. 15.15 Lacs). 2. As per the facts of the case, on 03.12.2011, on the basis of the specific intelligence, Directorate of Revenue Intelligence, had intercepted parcels at Air Cargo Complex, Ahmedabad booked with flight no. AMD-DOHA=QR-283 for overseas destinations viz. USA & UK, by M/s Anshanu Exports, Ahmedabad, which is prop. concern of Jigisha Sujal Patel. The intercepted goods contained in the packages were examined by DRI with reference to the description contained in the Courier Shipping Bill - [CSB -2] (Manifest) filed by M/s. Anshanu Exports, Ahmedabad. It was found by DRI that the goods being sent did not tally with the relevant description as per the CSB-2 submitted by M/s Anshanu Exports, Ahmedabad. Two cartons one of which was consigned to Shri Jigar Patel, NY, USA and the other to Shri Bhavesh Patel, Houston, TX, USA were declared to be containing Flour, Papad, Chikki, Pulses, Namkeen, Khakhra, Maggi, Chana and Spices. However, upon physical examination of the goods, it was found that though the outer packing of the said packets were of Kitchen Shresth Besan flour 1 kg, M/s Mann Flour & Food Pvt Ltd, Opp. GODC Estate, National Highway, Said, Kalol, Distri....
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....ns by the Ahmedabad Zonal Office of the Enforcement Directorate against various persons vide ECIR/15/AZO/2012 dated 08.11.2012 for conducting investigation qua the offense of money laundering committed by the accused/suspects. ED conducted investigation, wherein it is revealed that after re-packing Narcotics Drugs and Psychotropic Substance parcels and concealing the same in branded packets, invoices in the name of dummy firms used to be prepared and on basis of dummy names Courier Shipping Bills [CSB-2) used to be filed at Air Cargo Complex. Shri Sujal Vijay Patel, husband of present appellant and one of the accused in predicate case was engaged in the business of international courier service and he was handling/controlling the various firms run from his office situated at 102-104, Animesh Complex, Above Cargo Ford Motors, C.G. Road, Ahmedabad. Initially Shri Sujal Vijay Patel was having license for Customs clearance in the name of one firm M/s ACX International which was suspended by the Customs Department sometime in the year 2010 as an attempt to clear the consignment of imported cigarettes was made using the said licence. However, after the suspension of above Customs clearan....
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....d branded packets and resealed for export. Export of such tampered packets were being couriered through Speed Post from Foreign Post Office, Ahmedabad as well as via Air Cargo Complex, Ahmedabad. As regard psychotropic substances seized from the Air Cargo Complex, Ahmedabad and the flat owned by Shri Sujal Vijay Patel, it was disclosed during the investigation that Shri Sujal Vijay Patel used to get psychotropic substances from Shri Kapil Arora @ Pavan of Agra, Shri Kailash Rajput of Mumbai, Shri Rishi and Dr. Ashok of Mumbai. NDPS substances including Alprazolam, received from Shri Kapil were being exported by Shri Sujal Vijay Patel to U.K., U.S.A. and Spain. The overseas buyers of NDPS substances were Mr. Paul Galinson of USA, Mr. Greig of U.K. etc. Charges for shipment differ and ranged between about Rs.250/- per kg to Rs. 1,00,000/- per kg. depending upon the nature of substances/goods being booked by M/s Anshanu International Shipping Solution Pvt. Ltd. [AISS] where Rs. 1,00,000/- per Kg was charged for shipment of Methamphetamine Hydrochloride. Shri Sujal Patel had opened dummy firms in India and UK and as and when need arises to send Narcotics Drugs and Psychotropic Substanc....
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....urier company was not involved in the alleged crime, and hence, she is not facing any criminal trial qua the predicate offense under NDPS Act. He further argued that as per section 2(1)(y) of PMLA, 2002, the schedule offense means the offenses specified under part A of the schedule; or the offenses specified under part B of the schedule, if the total value involved in such offense is 30 lakh or more. Accordingly, he argued that no schedule offense was directly or indirectly committed by the present appellant, as alleged. He pointed out that individual director cannot be made liable for booking of any consignment, if the said consignment was booked in a routine manner without any active involvement of any employee of the company. He further contented that even otherwise the said two properties were acquired on 19.03.2004 and 18.04.2007 i.e. much before the alleged incident. The said two properties are not covered within the definition of 'Proceeds of Crime' in any manner. In support of his contention, he relied upon the judgment of the Hon'ble Supreme Court of India in the case of Pavana Dibbur Vs. Directorate of Enforcement 2023 SCC online SC 1586. He further argued that ev....
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.... the NDPS offences are covered in Part A of the Schedule. Even otherwise, the quantum of fraud in the present case is more than Rs. 30 lakhs, as discussed in detail in para no. 7 below. 7. Now, coming to the second issue, the contention of the appellant is that the said two properties being acquired much prior to the incident cannot be taken as proceeds of crime and attached accordingly. In this regard, I do not agree with the submission of the Ld. Counsel for the appellant as these attached properties are infused with the proceeds of crime itself as revealed in the investigation conducted by the ED, whereby the company named AISS received consignments of NDPS from Shri Kapila Arora @Pavan, Shri Kailash Rajput and Shri Rishi and between 09.04.2011 to 05.10.2011 AISS had received an amount of Rs. 19,54,700/- from Shri Kapila Arora @ Pavan which were reflected in the books of accounts of AISS as sales. Similarly, between 01.04.2011 to 09.06.2011 AISS had received an amount of Rs. 20,00,000/- from Shri Kailash Rajput which also included an amount of Rs. 2,00,000/- received from Shri Rishi. Further, these properties were mortgaged by the appellant with the Punjab & Sind Bank for avail....
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....sh received from Rishibhai 8 19.05.2011 Cash received 2,50,000 - 9 23.05.2011 Cash received 1,00,000 - 10 01.06.2011 Cash received 1,00,000 - Details of Amounts Received from Sai International of Sh. Kailash Rajput: Sl. No. Date Mode of Payment Amount 1 12.04.2011 Cash received 2,50,000 2 29.04.2011 Cash received 1,00,000 3 02.05.2011 Cash received 50,000 4 12.05.2011 Cash received 50,000 5 23.05.2011 Cash received 1,00,000 6 01.06.2011 Cash received 1,00,000 7 09.06.2011 Cash received 1,50,000 Since, these properties were kept afloat by the appellants by using different payments received from Narcotics and Psychotropic Substances suppliers as discussed aforesaid, thereby becoming infused with the proceeds of crime generated as a result of commission of offences in terms of Scheduled offences of PMLA, these properties themselves can be termed as proceeds of crime being acquired (loan repayment) from the amount of proceeds of crime. Even otherwise, it is an established fact that properties of "value thereof" can be attached as per the second limb of the definition of the "proceeds of crime", in case of non-availability of the proceed....
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.... or abroad". However, both the italicised categories would be liable to be invoked in cases where the actual tainted property cannot be traced or found out. It is only where the respondents are unable to discover the tainted property that they can take the statutory recourse to move against properties which may fall within the ambit of ―value of any such property or ―property equivalent in value held within the country or abroad‖. To the aforesaid limited extent, properties purchased prior to 01 July 2005 may also become vulnerable and subject to action under the Act. However, enforcement action against such properties would have to satisfy the tests and safeguards as propounded in Axis Bank with the learned Judge observing that in such a situation it would have to be established that the person accused of money laundering had an interest in such property at least till the time that he indulged in the proscribed criminal activity. The learned Judge further observed that bona fide rights acquired by third parties prior to the commission of the predicate offense would stand saved." This Tribunal has also given an elaborate judgment on the issue in the case of Sadan....
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....s were kept afloat by the appellants by using different payments received from Narcotics and Psychotropic Substances suppliers, thus becoming infused with the proceeds of crime generated as a result of commission of offences in terms of Scheduled offences of PMLA. Hence, these properties themselves can be termed as proceeds of crime being acquired (loan repayment) from the amount of proceeds of crime and thus, can be rightly attached regardless of the appellant not being arraigned as an accused. 9. Now coming to the last issue that officer has any reason to believe that the non-attachment of the properties will frustrate any proceedings under PMLA, as per section 5(1)(b) or the adjudicating authority has any reason to believe regarding the commission of offence under section 3 of PMLA for issuing show cause notice under section 8(1), as contended by the Ld. Counsel for appellant. In the present case, ED recorded ECIR No. 15/AZO/2012 dated 08.11.2012 on the basis of Criminal complaint filed by the DRI against the nine accused persons for commission of offences under the NDPS Act as detailed in para no. 02 above. Thereafter, ED initiated the investigation pertaining to the offence o....