TaxTMI 
TaxTMI 
2025 (8) TMI 939
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....2,000/- 2. Plot No. 480-482, Makarpura, Varoda having area 23156 sq. mtr. in the name of Jayant Oil Mills. 18,52,48,000/- 3. Plot No. 483, Village-Vadsar, Makarpura, Industrial Estate, GIDC, Vadodra having area 6291.97 sq. mtr. in the name of Jayant Veg Oils & Chemicals. 5,66,19,000/- 4. Plot No. 484A, Makarpura, Varodara having 4403 sq. mtr. in the name of Jayant Veg Oils & Chemicals. 3,52,24,000/- 5. Plot No. 601-610, 6th Floor, GIDC, Makarpura, Vadodra having area 6600.53 sq. mtr. in the name of Jayant Veg & Derivatives Ltd. 1,51,80,000/- 6. Block No. A1, Gayatri Krupa Housing Society, Vadsar Road, GIDC, Makarpura, Varodara having land area 131.15 sq. mtr. and built up area 130.95 sq. mtr. in the name of Shri Bharatbhai Mangaldas Kapadia. 26,21,200/- 7. Block No. A2, Gayatri Krupa Housing Society, Vadsar Road, GIDC, Makarpura, Varodara having land area 131.15 sq. mtr. and built up area 130.95 sq. mtr. in the name of Shri Rajesh Mangaldas Kapadia. 23,88,550/- 8. Land & Building on C.S. No. 545 (pt) & 6/546 Sitaphalwadi, Dr. Mascaren has Road, Mazgaon, Mumbai-10 having area 1657.54 sq. mtr. in the name of M/s Jayant Oil M....
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....ilable, and thereby, preparing the false documents showing that such quantity is in stock by inflating the same; and leasing the raw material and furnished goods to different banks against the said raw material/furnished goods, and thereby, obtained finances in various manner. Thereby, the accused persons misappropriated sum of Rs. 221,47,00,000/- or more and committed the scheduled offences. Some of the accused persons working in the accounts department of M/s Biotor Industries Limited were authorized to sign cheques up to Rs. 1 crore as authorized signatory by the company and by misusing the authority, on the basis of bogus bills of the goods, which were never received in the company, made payments through cheques to different merchants which enabled M/s Biotor Industries Ltd. (M/s BIL) to get farmer funding from the banks. M/s BIL had obtained short term loan (Farmers Funding) in the name of Bogus/Non-existent farmers from various banks viz. Rs. 100 crores from Oriental Bank of Commerce (OBC Bank), Ashram Road Branch, Ahmedabad-380009, which was credited in the M/s BIL's Management and Collection Agent Account (M&C account). Various accounts in the name of actual and bogus....
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....nd important excerpts of main persons are as under. i. Shri Rajesh Mangaldas Kapadia in his statement stated that he is the Managing Director of M/s BIL, which is engaged in the business of manufacturing and export of Castor oils and its derivatives. He is also Director on Board in M/s Biotor Contract Farming Limited, Mumbai, M/s Jayant Oil Mills Pvt. Ltd., which is also engaged in the business of Castor oil and derivatives. They had availed working capital loan of about Rs. 75 Crores under consortium of SBI, which was eventually increased to about 370 Crores in 2009. The working capital so availed has been used by the company in acquiring following properties: i. Ekalbara Land & Plant ii. Makarpura Expansion Project iii. Itola Plant of M/s Tetrapack iv. Ranoli Plant of M/s Bhansali Polymers v. Import of Sebacic Acid Plant & Machinery from China installed in Ekalbara Plant Total Agro Loan outstanding on account of M/s Biotor Industries Ltd. was to the tune of Rs. 399,81,38,025/-, belonging to 9 different banks. Amount received back in the various bank account of Biotor Industries Ltd. after discounting of cheques and in lieu ....
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....als Pvt. Ltd. Factor of M/s Biotor Industries Ltd. is built on this property. This property is a leased property taken from Gujarat Industrial Development Corporation. Lease agreement was executed on 12.05.1994. Valuation of this property was done by registered Govt. valuer as on year 2010 which comes to Rs. 3,52,24,000/-. v. Plot No. 601-610, 6th Floor, GIDC, Makarpura, Vadodara having area 6600.53 sq. mtr in the name of M/s Jayant Oils & Derivatives Ltd. Office of M/s Biotor Industries Ltd. is built on this property. This property was purchased from Vadodara Chamber of Commerce & Industries and the sale deed was executed on 28.03.2008. Valuation of this property was done by registered Govt. valuer as on year 2010 which comes to Rs. 1,51,80,000/-. vi. Block No. A1, Gayatri Krupa Housing Society, Vadsar Road, GIDC, Makarpura, Varodara, Gujarat having land area 131.15 sq. mtr and built-up area 130.95 sq. mtr in the name of Shri Bharatbhai Mangaldas Kapadia, Director of M/s Biotor Industries Ltd. This is a residential plot purchased from Jayraj Gokaldas Udeshi and the sale deed was executed on 16.01.2003. Valuation of this property was done by registered Govt. value....
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....Rs. 5,00,000/-. Valuation of this property was done by registered Govt. valuer as on year 2010 which comes to Rs. 2,60,30,000/-. xi. Flat No. 201, 20th Floor, Kshitij Building, The Nepean Sea Road Prag Prem Premises Cooperative Society Limited, 47, L Jagmohandas Marg, Near Consulate General of Russia, Nepean Sea Road, Mumbai - 400036 in the name of M/s Jayant Oil Products Pvt. Ltd. having area 1413 sq. ft. This property was purchased from Prag Prem Builders Pvt. Ltd. on 22.12.1975. Valuation of this property was done by registered Govt. Valuer as on year 2010 which comes to Rs. 5,15,74,500/-. On scrutiny of the property documents, most of the property documents were found in the name of M/s Jayant Oil Mills and group companies. On further scrutiny of the said property documents, it is seen that M/s Jayant Oil Mills is a proprietorship concern having proprietor as M/s Jayant Vegoils and Chemicals Pvt. Ltd. As per Rajesh Kapadia, during the year 2004-05, M/s Jayant Vegoils & Chemicals Pvt. Ltd. was renamed to Jayant Oils & Derivatives Ltd. which was further renamed to M/s Biotor Industries Ltd. in the year 2008, having three directors, Rajesh M. Kapadia, Bharat M. Kapadia....
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....ted that the banks and finance companies are the victims of the fraud and now being made to lose their valuable security and the present liquidator has been appointed to satisfy the claim of all the creditors as per the proportionate and preferential rights. Prayer is accordingly made to allow the present appeal and release the aforementioned property. 4. Ld. Counsel for Respondent No. 6 SBI duly supported the contention of the LD. counsel for the Liquidator of the Appellant company on identical lines. 5. On the other hand, Ld. Counsel for the respondent ED submitted that some of the accused persons working in the accounts department of M/s Biotor Industries Ltd. were authorized to sign cheques up to Rs. 1 Crore as authorized signatory by the company and by misusing the authority, on the basis of bogus bills of the goods which were never received in the company, made payments through cheques to different merchants which enabled M/s BIL to get farmer funding from the banks. M/s Biotor Industries Ltd. (M/s BIL) had obtained short term loan (Farmers Funding) in the name of bogus farmers from various banks viz. Rs. 100 Crores from Oriental Bank of Commerce (OBC Bank), Ashram R....
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....ECIRs were the same, consolidated investigation was carried out. It was revealed that the total amount by which the banks have been defrauded/suffered loss is to the tune of Rs. 338.35 Crores. Ld. Counsel for the Respondent submitted that since the trail of proceeds of crime could not be traced, the Respondent ED identified 31 properties of the accused persons which are attached in terms of Section 2(1)(u) as value equivalent thereof. Ld. Counsel for the respondent submitted that the contention of the appellant Liquidator that Insolvency and Bankruptcy Code, 2016 (IBC) provisions will get precedence over provisions of PMLA is not correct, as PMLA is a Special Act and proceedings under PMLA get precedence over other Act in terms of Section 71 of the Act. Prayer is accordingly made to dismiss the present appeal being devoid of any merits. 6. We have considered the rival submissions and we have given our thoughtful consideration to the same. Now, coming to Section 71 of PMLA, 2002 states as under: "71. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law the for the time being in force." Now coming....