TaxTMI 
TaxTMI 
2025 (10) TMI 496
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....as a Constable, MP Transport Department. In that FIR, it is alleged that Smt. Divya Tiwari, wife of Saurabh Sharma purchased a plot from Jiauddin for Rs. 6,59,679/- on 07.09.2022. On the same day, Chetan Singh Gaur (co-accused) who is friend and business partner of Saurabh Sharma purchased another plot from Akhtar Jia for Rs. 5,28,255/-. Saurabh Sharma was establishing a branch of renowned Jaipuria School in which he has made his mother Smt. Usha Sharma as Chairperson and his wife Smt. Divya Tiwari as director. Saurabh Sharma has made significant fixed deposit in the name of his son Aviral Sharma. Additionally, M/s Aviral Building Construction Pvt. Ltd, incorporated in 2021 in which Sharad Jaiswal and Chetan Singh Gaur are directors and Rohit Tiwari, brother-in-law of Saurabh Sharma is as Additional Director. In this company, Saurabh Sharma allegedly amassed substantial wealth through corrupt practices within the Transport Department. 3. In the search of Lokayukt, it is also found a ware house in the names of his mother Smt. Uma Sharma and his friend and business partner Chetan Singh Gaur situated at Sukhi Sewania, Bhopal, contracts for fisheries business at Govind Sagar Dam and....
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.... the competent Court. During the investigation conducted by ED, it is found that huge amount and properties have been made by the present applicant in his name and in the name of his family members, relatives, friends and company. 6. Learned counsel for the applicant has made following submissions: i. Applicant is innocent and has been falsely implicated in this case. It is submitted that present applicant was earlier arrested in Prevention of Corruption Act on 28.01.2025. In that case, Lokayukt police has not filed charge sheet in the prescribed period, therefore, default bail was granted on 01.04.2025. Thereafter, ED has registered ECIR/BHZO/19/2024. ii. It is submitted that charge sheet under the Prevention of Corruption Act which is a "Schedule offence" has not been filed, therefore, "Proceeds of crime" does not come into picture. The filing of charge sheet under Section 173 of Cr.P.C is mandatory even for passing the attachment order under Section 5 of Prevention of Money Laundering Act, 2002 (herein after referred as "PMLA, 2002"). iii. It is submitted that the properties mentioned in the FIR dated 19.12.2024 and ECIR dated 21.12.224 are not belo....
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....e applicant has no previous criminal record. There is no chance of tampering the witnesses. It is submitted that twin conditions for granting of bail under Section 45 of PMLA, 2002 have already been satisfied fully as due opportunities have been granted to the respondent to oppose the bail application. It is further submitted that the applicant cooperates at every stage of the investigation and appears before the ED on multiple occasions as and when he was required for investigation. There is reasonable grounds to believe that the applicant is not guilty of such an offence of money laundering. The applicant is a well reputed individual with having good reputation in the society and community. He does not have any criminal antecedent. He is to abide by all the conditions which may imposed by the Court while granting bail to him with the undertaking that he will not tamper with any evidence or to influence any witness of the case. The investigation against the present applicant has been completed. Therefore, the applicant may be enlarged on regular bail. 7. Learned counsel for the respondent vehemently opposed the bail application and made the following submissions: Sr.No. D....
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.... It is further submitted that applicant helped his friend co-accused Chetan Singh and Sharad Jaiswal in getting unsecured loans of crores of rupees from various persons, individuals /firms. He also took multiple unsecured loan from the various persons/entities, who do not have financial capacity for providing such huge amounts to persons/entities related to Saurabh Sharma. It is further submitted that during investigation, it is found that all the unsecured loans were obtained by him for laundering his illegal money. iv. It is further submitted that firms and companies were not doing any legitimate business and they are for only to launder the proceeds of crime acquired by applicant through corrupt practices. All the properties which were seized during investigation belongs to applicant. It is further submitted that all the properties purchased by applicant in the name of his family members, relatives, friends and their companies/firms are nothing but proceeds of crime as all these properties were obtained and derived as a result of criminal activity relating to schedule offence. v. It is further submitted that during the course of search operation, gold jewellery....
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....can take recourse to appropriate remedy, as may be permissible in law to ensure that the culprits do not go unpunished and the proceeds of crime are secured and dealt with as per the dispensation provided for in the 2002 Act. Suffice it to observe that the amendment effected in 2015 in the second proviso has reasonable nexus with the object sought to be achieved by the 2002 Act. xxxxx 316. As a result, we have no hesitation in observing that in whatever form the relief is couched including the nature of proceedings, be it under Section 438 of the 1973 Code or for that matter, by invoking the jurisdiction of the Constitutional Court, the underlying principles and rigors of Section 45 of the 2002 must come into play and without exception ought to be reckoned to uphold the objectives of the 2002 Act, which is a special legislation providing for stringent regulatory measures for combating the menace of money-laundering. xxxxx 382.20. As regards the prayer for grant of bail, irrespective of the nature of proceedings, including those under Section 438 of the 1973 Code or even upon invoking the jurisdiction of Constitutional Courts, the underlying princ....
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.... view of the Court based on available material on record is required. The Court will not weigh the evidence to find the guilt of the accused which is, of course, the work of Trial Court. The Court is only required to place its view based on probability on the basis of reasonable material collected during the investigation and the said view will not be taken into consideration by the Trial Court in recording its finding of the guilt or acquittal during trial which is based on the evidence adduced during the trial. As explained by this Court in Nimmagadda Prasad [(2013) 7 SCC 466], the words used in Section 45 of the 2002 Act are "reasonable grounds for believing" which means the Court has to see only if there is a genuine case against the accused and the prosecution is not required to prove the charge beyond reasonable doubt." 10. In the case of "Satish Jaggi Vs. State of Chhattisgarh", (2007) 11 SCC 195, the Hon'ble Supreme Court has held that "at the stage of granting of bail, the Court can only go into the question of prima facie case established for granting bail, it cannot go into the question of credibility and reliability of witnesses put up by the prosecution. The que....
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....ck or infirm or is accused of money laundering a sum of less than one crore rupees. Remaining portion of Section 45 is not relevant for present purposes. 12.1 In the case of Vijay Madanlal Chaudhary (supra), the Supreme Court traversed through the laudable purpose behind enactment of the PML Act and observed thus: "286. Considering the purposes and objects of the legislation in the form of 2002 Act and the background in which it had been enacted owing to the commitment made to the international bodies and on their recommendations, it is plainly clear that it is a special legislation to deal with the subject of money laundering activities having transnational impact on the financial systems including sovereignty and integrity of the countries. This is not an ordinary offence. To deal with such serious offence, stringent measures are provided in the 2002 Act for prevention of money laundering and combating menace of money-laundering, including for attachment and confiscation of proceeds of crime and to prosecute persons involved in the process or activity connected with the proceeds of crime. In view of the gravity of the fallout of money laundering activities having tran....
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.... salutary doctrine of "bail is the rule and jail is an exception", matters of bail in cases involving socio-economic offences have to be visited with a different approach, as held in State of Bihar & Anr. vs Amit Kumar (2017) 13 SCC 751. 12.4 As held by Hon'ble the Supreme Court in the case of Y.S. Jagan Mohan Reddy vs CBI, (2013) 7 SCC 439: "34) Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. 35) While granting bail, the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the pu....
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....f the Code. In view of such glaring inconsistencies between Section 50 PMLA and Sections 160/161CrPC, the provisions of Section 50 PMLA would prevail in terms of Section 71 read with Section 65 thereof." 15. The Hon'ble Supreme Court in the aforementioned judgment underscored that such statements, being recorded in the course of an inquiry rather than an investigation, are not subject to the restrictions under Article 20(3) and Article 21 of the Constitution. Instead, they are deemed to be judicial proceedings under Section 50(4) of the PMLA and, therefore, admissible as evidence in proceedings under the PMLA. 16. At this stage, it is to be determined whether the applicant is exempted from the rigors of the twin conditions of bail, if not, then whether the applicant has satisfied the twin mandatory conditions under Section 45 of the PMLA. In light of the same, it is imperative to carefully examine the prosecution complaint, statements of the applicant and co-accused persons alongwith the relevant documents. 17. Accordingly, this Court has referred to the statement of the co-accused persons, relevant gist of which are as under: Statement of Chetan Singh Gaur recorded und....
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....een arranged by Saurabh Sharma only. He was appointed as Treasurer in the Rajmata (Bharamata) Shiksha Avam Samaj Kalyan Samiti, Bhopal by Saurabh Sharma who had started the construction of one School on the land owned by Rajmata (Bharatmata) Shiksha Avam Samaj Kalyan Samiti, Bhopal. Statement of Smt. Uma Sharma recorded under Section 50 of PMLA: 20. Smt. Uma Sharma who is mother of the applicant has stated that her son Sourabh Sharma (applicant) had taken franchisee of Jaipuria School in the name of Rajmata (Bharatmata) Shiksha Avam Samaj Kalyan Samiti, Bhopal but she does not know other details of the society. She has become Chairman at the behest of Saurabh Sharma. It is also disclosed by her that her daughter-in-law Smt. Divya Tiwari owns a petrol pump which was look after by Saurabh Sharma (applicant). Statement of Shri Rohit Tiwari recorded under Section 50 of PMLA: 21. Shri Rohit Tiwari has disclosed that Sourabh Sharma is the husband of his cousin sister Smt. Divya Tiwari. He stated that in the nine companies or firms he is director/partner. He knows Chetan Singh Gaur through Saurabh Sharma and he was made Additional Director in M/S Aviral Building Construction P....
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....arma could do his transactions separately. Chetan Singh Gaur who is a childhood friend of applicant Saurabh Sharma has transferred Rs. 70 Lakhs and Rs. 3,78,50,000/- in her bank account no. 110141891538. She stated that she had given signed cheque book of her bank account No.110141891538 and 77812020000271 to her son-in-law, Saurabh Sharma and she was not aware to whom the payments were made by him from her bank accounts. Statement of Smt. Divya Tiwari recorded under Section 50 of PMLA: 24. Smt. Divya Tiwari who is wife of applicant has disclosed that she was director of the M/s Skylocs Systems Private Limited. But this company has not started any business. She has no idea about the immovable property purchased in her name and in the name of M/s Aviral Enterprises Pvt. Ltd. in which she is a director as the Saurabh Sharma used to look after the immovable properties. She has only signed on the documents on the instructions of Saurabh Sharma. Saurabh Sharma can explain about the source of money used for the purchase of immovable property. Chetal Singh Gaur is business partner of her husband Saurabh Sharma and Pyarelal is the driver. She also stated that the cash seized by SPE L....
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....sh Kaur Mac for a consideration of Rs.1,50,00,000/- and no cash for the purchase of this property was utilized. That Chetan Singh Gaur is the owner of Innova Car having registration no.MP-07-BA-0050. That Saurabh Sharma used this car for his office related work. Relevant part of statement of applicant Saurabh Sharma recorded under Section 50 of PMLA: 27. Sourabh Sharma (applicant) has stated in his statement that regarding the source of funds for which movable and immovable properties amounting to Rs. 3.86 Crores(approx.) was seized by SPE Lokayukta Police Bhopal at his residence at E-7/78, Arera Colony Bhopal, he stated that Rs. 80 Lakhs in cash was seized by SPE Lokayukta Police Bhopal during their search at his residential premise E-7/78, Arera Colony, Bhopal belongs to his mother Smt. Uma Sharma and he doesn't have any idea regarding remaining amount/properties. That he knows Chetan Singh Gaur who is his school time friend: that Chetan Singh Gaur used to deal in electrical appliances in Gwalior and he used to come to Bhopal in the year 2021 for his business expansion; that Chetan Singh Gaur also started doing fisheries business and took tender of fisheries at Rajghat ....
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....ts, the following inferences can be drawn with respect to the issues under consideration. 29. During the search conducted by SPE Lokayukta Police, Madhya Pradesh at the residence of applicant Saurabh Sharma at E-7/78 Arera Colony, Bhopal on 19.12.2024 a total seizure amounting to Rs. 3.86 crores which includes cash of Rs. 1,14,53,000/-, gold jewelry of Rs. 50,37,425/- and other valuable items of Rs.2,21,12,400/-. On the same day, from Chetan Singh Gaur at E-7/657 Arera Colony, Bhopal on 19.12.2024, cash of Rs.1.687/- and silver of Rs.2.11 crores were also seized. 30. On 19.12.2024 the Income Tax Department has seized one Innova Car bearing registration No. MP07BA0050 parked in Mendori, Bhopal in which cash Rs.11.60 crores and gold bullion weighing to 51.893 kg worth of Rs.40,27,43,902/- was seized. Although the car was registered in the name of co-accused Chetan Singh Gaur but the car belongs to present applicant Saurabh Sharma and he used this vehicle. 31. During investigation it is found that 9 immovable properties were purchased in the name of M/S. Aviral Building Constructions Pvt. Ltd. from 03.10.2022 to 11.10.2023 total worth of Rs.6,44,33,000/- (detailed description....
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....escription of which is available in Table 11 in complaint filed by E.D.). 37. It is also pertinent to mention here that Smt. Divya Tiwari, the wife of present applicant, is also one of Directors in M/s. Aviral Enterprises Pvt. Ltd. in which co-accused Chetan Singh Gaur was also Director in the said company. 38. In the investigation, it is also found that the present applicant was constructing the school on the two immovable properties worth Rs.13,35,48,832/- belongs to M/s. Rajmata Bharatmata Shiksha Avam Samaj Kalyan Samiti, Bhopal (description of which is available in Table 12 in complaint filed by E.D.).I t is submitted that Smt. Uma Sharma, mother of present applicant, was made President and his wife Smt. Divya Tiwari, his friends/business partners/co-accused Sharad Jaiswal and Chetan Singh Gaur were appointed as Vice President, Treasurer and Secretary etc. of said society. It is also found that total amount incurred for construction of school around Rs.7 to 8 crores but payment of only Rs.20 lacs was made from the account of committee of school bearing bank account No.5296814006 maintained wiht Central Bank of India. The documents seized from the premise of co- accused C....
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....cant. This company was not doing any business. 43. In the investigation, it is also found that prior to the contact of present applicant, co- accused Chetan Singh Gaur does not have any immovable property on his own name but various properties have been purchased by present applicant in the name of M/s. Aviral Building Construction Pvt. Ltd. and M/s. Aviral Enterprises Pvt. Ltd. M/s. Chetan Singh Gaur for fisheries business. He has no independent source of income. The F.D. of Rs.6 crores were arranged by present applicant for providing security for the fisheries business. The cash amounting to Rs.2,5 crores, gold and silver jewellery and property documents seized from the residence of co-accused Chetan Singh Gaur by SPE Lokayukta Police, Bhopal belongs to present applicant. The Innova Car bearing No.MP07-BA-0050 from which cash and gold were recovered and seized by Income Tax Department, Bhopal also belongs to present applicant. 44. M/s. CSG Fisheries was also started by present applicant for allotment of tender of fisheries in Uttar Pradesh. 45. Smt. Krishna Jaiswal, who is mother of co-accused Sharad Jaiswal, was also Director in M/s. Aviral Enterprises Pvt. Ltd. 46. ....
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.... A. Evidences of offence of money laundering against Smt Saumya Chaurasia-- Mrs Saumya Chaurasia is an officer of the Chhattisgarh State Civil Services who was posted as the Deputy Secretary in the Office of Chief Minister of Chhattisgarh and was working as an OSD to CM. Despite being relatively very junior in the bureaucratic hierarchy, she enjoyed unprecedented power and control because of her direct access to higher political powers. Information shared by the Income Tax Department and analysis of documents and digital devices seized during the searches conducted under Section 17 PMLA, 2002 revealed that Smt Saumya Chaurasia, Deputy Secretary working in the Chief Minister's Office, is one of the key persons increation of the syndicate headed by Shri Suryakant Tiwari. An extortion racket of this magnitude and nature was possible only when multiple State agencies fell in place and everyone supported the illegal acts of Suryakant Tiwari. This was made possible by Saumya Chaurasia so that pliant officers were posted in the coal mining districts who would listen to Suryakant Tiwari. Also, it was an unwritten rule that instructions of Suryakant Tiwari meant the voice of Saumya Ch....
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....Anurag Chaurasia; the evidences of movement of funds acquired out of extortion syndicate run by Mr Suryakant Tiwari to Manish Upadhyay, proxy of the appellant; the utilisation of proceeds of crime and acquisition of properties by the appellant in the name of her mother Shanti Devi and cousin Mr Anurag Chaurasia along with the details of the said properties, etc. have been detailed in the said prosecution complaint, which leave no doubt in the mind of the Court that prima facie the appellant has been found involved in the commission of the offence of money laundering as defined in Section 3 of the said Act." 52. As the Hon'ble Supreme Court has emphasized in a catena of judgments, the offence of money laundering must be viewed in the context of the entire criminal enterprise rather than in isolation with respect to individual roles. The collective nature of the operations, the financial interlinks between the accused persons and the fraudulent intent evidenced through sustained unlawful activity, leave no doubt that the applicant was an integral part of the broader scheme to launder proceeds of crime. 53. As per the investigation conducted by Directorate of Enforcement the app....
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....mselves in illegal activities. In essence, the courts should exercise the discretion judiciously using their prudence, while granting the benefit of the first proviso to Section 45 PMLA to the category of persons mentioned therein. The extent of involvement of the persons falling in such category in the alleged offences, the nature of evidence collected by the investigating agency, etc. would be material contradictions." 55. Now this Court shall decide as to the applicant has successfully discharged the burden of proving that he is not guilty of the alleged offence and is unlikely to commit any offence while on bail. 56. It is well settled, as reiterated by the Hon'ble Supreme Court in Vijay Madanlal Choudhary (Supra) and Manish Sisodia (Supra), that while the stringent twin conditions under Section 45 restrict the right to bail, they do not impose an absolute bar. The discretion of the court in granting bail remains judicial and must be exercised in accordance with the settled legal principles. The governing principle that "bail is the rule, and jail is the exception" must be harmonized with the legislative mandate that requires satisfaction of the conditions laid down under....