TaxTMI 
TaxTMI 
2025 (8) TMI 718
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....ain, Advocate ORDER The batch of appeals have been filed by the appellants to challenge the order dated 07.11.2023 passed by the Adjudicating Authority allowing retention of the records and freezing of bank accounts and foreign currency. 2. The appeal has been filed by few defendants out of many before the Adjudicating Authority. Brief facts of the case: 3. An FIR No. 158/2022 was registered by PS, CCS, Hyderabad on 01.08.2022 against M/s Sahiti Infratec Ventures India Private Limited (SIVIPL) and its MD, Shri Boodati Laxminarayan and other unknown persons for commission of offence of cheating, criminal breach of trust jeopardizing the interest of the various investors causing wrongful losses to them and corresponding wrongful gains to the accused to the tune of Rs. 72,81,98,000/-. 4. In pursuance to the FIR, an ECIR was recorded by the respondent followed by investigation. In the investigation, it was revealed that a project in the name of 'Sarvani Elite' was launched by the company where they collected Rs. 250 crores from more than 1000 customers. It was also revealed that many other FIRs have been registered by the investors and home-buyers alleging that despit....
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....gainst the cash received from the customer by the company through the people working under Mr. S. Purnachandra Rao; iv. Cheques were-received from the customers for the sake of issuing receipts to the customers, and later such cheques were entered as bounced cheques in the books by the employees, who were influenced by Mr. S. Purnachandra Rao and such cheques have been deposited in the bank account of S. Purnachandra Rao and his relatives. v. Receiving blank cheques from the customers and convincing them to draw the cheques without filling the name and depositing the said cheques in his bank accounts and into the bank accounts of his wife Mrs. Varada Swathi, Father-in-law Mr. Varada Rama Rao and in the bank account of his associated entity M/s. Full Moon Realtors. vi. He further stated that Mr. S. Purnachandra Rao had deposited the cheques taken from customers in the following bank accounts of himself and his relatives and entities belonging to him. vii. Further, the analysis of bank account statement of account No. 920020002486799 of M/s Full Moon Realtors obtained from Axis Bank revealed that it is the proprietorship concern of Mr. S. Purnachan....
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....th the MD, Shri B. Laxminarayan and accordingly impugned order deserves to be set-aside. 11. Ld. Counsel for the appellant did not raise any other issue than referred to the above. The Counsel for the appellant was given liberty to raise any other legal or factual issues made out from the records but he restricted his argument to what has been given above and accordingly Ld. Counsel for the respondent was called upon to contest the appeal. Arguments of the Counsel for the respondent: 12. Ld. Counsel for the respondent made elaborate arguments to show involvement of the appellant who was the Vice- President of Marketing and Marketing Head of the accused company. In the investigation, it was revealed that the appellant misused his position. He had taken the money and deposited to their bank accounts or in the bank accounts of associates which may include even the family members. The amount aforesaid was out of booking amount of the home- buyers/ investors and accordingly on the registration of FIR by the home-buyers alleging cheating and misappropriation of funds by the Company and more specifically Shri B. Laxminarayan, MD and unknown person, the investigation was caused. T....
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.... and his associates and even the family members had received the amount from the investors directly and therefore the bank accounts apart from all the relevant records were seized/freezed under Section 17(1) of the Act of 2002. 16. The role of the each appellant is as under: (i) Appellant No. 1 - Shri Sandu Purnachandra Rao He is one of the ex-directors of SIVIPL was heading the Sales and marketing team and it has been revealed from the internal audit that he is the main person involved in the misappropriation of funds to the tune of Rs. 126 Crores from the books of M/s SIVIPL. The laundered funds were utilized by him in the purchase of large number of properties in the name of his family members and various firms and companies. (ii) Appellant No. 2 - Mrs. Sandu Baby Swathi She is wife of Mr. S. Purnachandra Rao and various properties have been acquired by her out of the funds misappropriated by her husband out of the books of accounts of M/s SIVIPL and these properties are not commensurate with her income as declared in ITRs. (iii) Appellant No. 3 - Mr. Varada Rama Rao He is father-in-law of Mr. S. Purnachandra Rao and....
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....se of money-laundering against them, a Prosecution Complaint is going to be filed. 18. The Counsel for the appellant, however, submitted that the FIR was lodged by the Company alleging misappropriation of funds by the appellant and his associates, however, the case in hand pertains to an FIR lodged by the homebuyers who alleged to have been cheated by the Company wherein appellant is also found to be involved. The modus operandi of the appellant to collect the money has been given by the Chartered Accountant, Shri Jitender Kalluri. It is disclosed that the collection of money was made in cash by the appellant going against the policy of the company and thereupon the amount was deposited in different bank accounts. 19. The appellant, Shri S. Purnachandra Rao was found involved in issuing fake cash receipts to the customers by appointing unauthorized persons on behalf of the Company. It was also revealed that the letter of the Company was used for cash receipt in lieu of issuing a computer generated receipt as per the policy of the company. The appellant remained successful in deleting the cash receipt entered into computer. The cheques were received from the customers but thes....