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2025 (7) TMI 352
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....in the property by the Appellant Smt. Malvee Sudershan was confirmed. 2. Ld. Counsels for the Appellants contended that on the basis of Charge Sheet No. 6 dated 05.08.2013 filed by the CBI invoking violation of Sections 420, 409 & 120 of IPC and Sections 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, the Respondent Directorate registered ECIR for investigation under PMLA. Ld. Counsels alleged that the Appellant Shri Vivek Sudershan has been falsely implicated by CBI. The Appellant was Secretary of the NGO M/s SEARCH, which had been assigned work of distribution of mid-day meals in the schools in Mainpuri District of Uttar Pradesh. The allegations against the Appellant is that he received payment of excess conversion of cost to the tune of Rs. 6.38 crore and foodgrains between the period from March 2008 to March 2011. That the CBI after investigations concluded that the NGO M/s SEARCH got opened Saving Bank Account bearing No. 2051000100365913 on 02.02.2005, with PNB (Punjab National Bank) Shastri Nagar Branch, Ghaziabad, U.P.; that all the treasury cheques issued in favour of M/s SEARCH with respect to Mid-Day Meal Scheme in Mainpuri District had been deposited in Accou....
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....y the District Authorities, CBI & ED. The factual mistakes in the number of blocks/areas allotted to M/s SEARCH and ignoring other centers are fundamental to the very basis on which the computation was made. Ld. Counsel further stated that cash had to be withdrawn and paid for purchase of ingredients of food, payments to cook and other miscellaneous expenses which could not have been done through cheques. Ld. Counsel stated that the second issue with respect to opening of other accounts is explained since better services were provided by the Axis Bank than those provided by the Punjab National Bank. The CBI only noticed the transfer of funds from the accounts of the NGO but ignored that money had also been transferred from the account of the SEARCH FILM PRODUCTION to those of the NGO. Ld. Counsel also contended that there were no intermingling of funds across the accounts and the transfers did not involve huge amounts. Ld. Counsels also raised the third issue relating to the attachment of property. 4. Ld. Counsels for the Appellants stated that since the Respondent Directorate had nothing to attach from M/s SEARCH and from the Appellant Shri Vivek Sudershan and his partner/assoc....
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....d suspected persons were found being involved in awarding the work for serving Mid-Day Meal in Primary and Upper-Primary Schools in Mainpuri District with malafide to M/s SEARCH and in paying excess conversion cost and foodgrain to M/s SEARCH. The unlawful gains made for themselves are proceeds of crime. The investigation reveals that the treasury cheques paid to M/s SEARCH had signatures of the Appellant Shri Vivek Sudershan on the reverse side of the cheques. Total amount of Rs. 3,30,85,000/- was withdrawn in cash in different installments from the account of M/s SEARCH in PNB. Total of Rs. 5,44,50,000/- was transferred to the another account in Axis Bank from the account in PNB. Investigation also revealed that Rs. 9,49,00,000/- had been transferred from the PNB account to third account opened in the name of M/s SEARCH FILM PRODUCTION. Thus, excess conversion cost Rs. 6,37,97,535/- and excess foodgrain being 41691.94 quintals went to the benefit of the Appellant Shri Vivek Sudershan and his associate Shri Ashok Chauhan. The Sub-Registrar-I, Ghaziabad informed that the four properties purchased by the two Appellants was further sold off and only one property at Dundahera, Ghaziab....
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....nt of the proportionate amount of Rs. 26,31,508/- invested in the property by the Appellant Smt. Malvee Sudershan. The property is in the name of the Appellant Smt. Malvee Sudershan. The said PAO has been confirmed by the Ld. AA through the Impugned Order. However, besides the Appellant Smt. Malvee Sudershan, her husband Shri Vivek Sudershan has also filed the Appeal. There is no dispute about there being no property in the name of Shri Vivek Sudershan which has been attached through the Impugned Order. It appears from the records that Shri Vivek Sudershan has been charged in the Scheduled Offence as well as is being prosecuted in the complaint filed for offence of Money Laundering. Moreover, the Appellant Shri Vivek Sudershan has strongly pleaded that since there was no proceed of crime, the attachment of the property in the name of his wife was wrongfully done. The question of guilt with respect to the aforementioned offences shall be decided by the Special Court which is undertaking the trial for these offences. The question whether the property which has been attached is proceed of crime and involved in Money Laundering as decided in the Impugned Order, is to be examined. 8.....
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....ies in the name of the Appellants was made in cash. Wherever cheques were used, it has been shown in the investigation that unexplained cash deposits were made in the accounts on which cheques were drawn. Even though Appellants have denied the intermixing and intermingling of accounts, such denials cannot stand in view of clear evidence as to transfer of money from the account in the name of M/s SEARCH to personal accounts and to the account of M/s SEARCH FILM PRODUCTION. Ld. Counsels have also taken the plea that part funding of the purchase of the property and the repayment of the loan could be explained since the Appellant Ms. Malvee Sudershan is a qualified fashion designer and has been Income Tax assessee. Merely bald assertion without details and documentary evidence, for generation of the income and of utilization for such purposes, cannot be accepted. The analysis made during the course of investigation of the joint account of the two Appellants in PNB, Kavi Nagar, Ghaziabad has clearly brought out that for repayment of bank loan, with every EMI, cash deposits were made in the bank account just prior to the date when the EMI became due. The source of these cash deposits is ....
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....ected with the [proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of offence of money-laundering. [Explanation.--For the removal of doubts, it is hereby clarified that,-- (i) a person shall be guilty of offence of money- laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or 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.] 5. Attachment of proper....
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....he order, along with the material in his possession, referred to in that sub-section, to the Adjudicating Authority, in a sealed envelope, in the manner as may be prescribed and such Adjudicating Authority shall keep such order and material for such period as may be prescribed. (3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that subsection or on the date of an order made under 4[sub-section (3)] of section 8, whichever is earlier. (4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under subsection (1) from such enjoyment. Explanation.--For the purposes of this sub-section, "person interested", in relation to any immovable property, includes all persons claiming or entitled to claim any interest in the property. (5) The Director or any other officer who provisionally attaches any property under sub-section (1) shall, within a period of thirty days from such attachment, file a complaint stating the facts of such attachment before the Adjudicating Authority". 13. Section 2(1)(u) defines the `proce....