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TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1471
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....n of Money Laundering Act, 2002 (PMLA) in the Original Complaint No. 380/2014 (OC). The Provisional Attachment Order No. 377/2014 dated 13.02.2014 (PAO) was confirmed vide the Impugned Order. The PAO was issued in ECIR NO. KLZO/01/2013 dated 16.05.2013, which was registered in consequent to the case pertaining to Saradha Group of Companies whereby money had been mobilized by cheating the common people under false promise of high returns. However, money was not returned and allegedly Scheduled Offence of Section 420 of IPC had been committed. The PAO NO. 377/2014 dated 13.02.2014 besides making provisional attachment of other properties, also included three bank accounts of the Appellant. These bank accounts were in State Bank of Hyderabad, ....
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....ores which was received as sponsorship by the East Bengal Club from Saradha Group. However, Ld. Counsel argued that the said amounts were in accordance with the agreements dated 31.05.2011 whereby the East Bengal Club contributed 25% of its assigned budget for the payment of the players. The payments which were made for the financial years 2010-11, 2011-12 and 2012-13 were of amounts Rs. 1.5 crore Rs. 1.85 crore and Rs. 0.51 crore respectively. Ld. Counsel stated that the statement of Shri Tapan Kumar Das, the accountant of the East Bengal Club corroborates this fact as he specified that the funds which were transferred were for payment of players. Ld. Counsel contended that the freezing of the bank balances totalling Rs. 1,78,66,958/- does....
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....o of Saradha Group. Consequent to this sponsorship, East Bengal Club received Rs. 4.08 crore as sponsorship money from Saradha Group. Out of which Rs. 3.86 crores was transferred to KFEBFT. Ld. Counsel argued that this very fact of transfer of proceeds of crime from East Bengal Club to KFEBFT shows siphoning of funds and layering of proceeds of crime. Ld. Counsel argued that the reason to believe required under Section 5(1) of PMLA thus existed and the action of provisional attachment was warranted. Ld. Counsel further argued that even if Rs. 3.86 crores which was transferred from East Bengal Club to KFEBFT is accepted to have been used for the payment to players, in view of the fact that the proceeds of crime had been dissipated, there was....
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....eceived as part of the commitment of the East Bengal Club to bear 25% of the payments to be made to the players under the agreement dated 31.05.2011. There is nothing on record to deny that Rs. 3.86 crores which was received by the Appellant Company was part of the funds that the East Bengal Club had received from Saradha Group. Since, the Appellant Company had used Rs. 3.86 crores to pay the players, the Respondent Directorate froze the three bank accounts of the Appellant Company having total balance of Rs. 1,78,66,958/-. The Appellant Company has questioned the freezing of this amount on the grounds that the said amounts were received from sources of the Income Tax Department and of the United Breweries Ltd. 8. For examination of this....
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....y. If the property is taken or held outside the country, even in such a case, the property equivalent in value held within the country or abroad can be proceeded with. The definition of "property" as in Section 2(1)(v) is equally wide enough to encompass the value of the property of proceeds of crime. Such interpretation would further the legislative intent in recovery of the proceeds of crime and vesting it in the Central Government for effective prevention of money laundering." 10. This Tribunal in its Order dated 01.05.2024 in Appeal No. FPA- PMLA-4358/KOL/2021 relating to the matter of Ayush Kejriwal vs. Deputy Director, Directorate of Enforcement has observed the following: "14. The definition of `proceeds of crime‟ w....
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....son and the property in that case would not be liable for attachment or seizure for the reason that the person holding the property has not been named as an accused, in that case, the very purpose and object of the Act would be frustrated. In view of the above, even if the appellant is not named as an accused but he is holding the `proceeds of crime‟ and even if the property if not directly or indirectly obtained out of the crime but is of the value thereof, it would fall in the definition of `proceeds of crime' and such property or document can be subjected to seizure." 11. The reading of the definition of the proceeds of crime and the interpretation of the definition made in the judgments cited afore, it is clear that the amounts....