TaxTMI 
TaxTMI 
2025 (11) TMI 377
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.... Order) passed by the Ld. Adjudicating Authority (AA) under the Prevention of Money Laundering Act, 2002 (PMLA) in the Original Complaint No. 1190/2019 (OC). The Provisional Attachment Order No. 02/2019 dated 16.08.2019 (PAO) was confirmed vide the Impugned Order whereby provisional attachment of a number of properties of various persons, both natural and legal, has been confirmed. The provisional attachment of the properties of the Appellants herein, which has been confirmed vide the Impugned Order are following: Description of the Person Description of the Property M/s Mind is King Rs. 42,213/- in A/c No. 50200030565964, in HDFC Bank M/s Mind is King Rs. 4,64,14,599/- in A/c No. 9312978885, in Kotak Mahindra Bank Shri Deepak Sharma 87.80 Sq. Meter, 2nd Floor, A-118, Subhadra Colony, Sarai Rohilla, New Delhi of value Rs.24,00,000/- Smt. Sunil Sharma 87.80 Sq. Meter, 2nd Floor, A-118, Subhadra Colony, Sarai Rohilla, New Delhi of value Rs.24,00,000/- Shri Manish Grover MIG Plot No. 3066, Ground Floor, Sector 44- D, Chandigarh of value Rs. 40,00,000/- 2. Ld. Counsels for the Appellants contended that the Appellant Shri Deepak Sharma is a self-ma....
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....ummons of the Respondent Directorate, while others did not do so. He also stated that the reasons to believe for the provisional attachment of the property should have been given in writing. He maintained that the Appellant had not said that the 'Mind is King' is the Hindi translation of the Book 'Secret'. The book 'Mind is King' was sold on Amazon and other Online Platforms. It is wrong to state that M/s FMLC parked its funds with the firm M/s Mind is King. He pleaded to allow the Appeal. 5. Ld. Counsel for the Appellant M/s Mind is King while reiterating the pleadings made by Shri Deepak Sharma, emphasized that there are many FIRs against Shri Radhe Shyam and Shri Bansi Lal, yet not even a single final report has been filed depicting the involvement of any of the Appellants including the Firm. It was also pleaded that the statements made by the Appellants before the Respondent are the result of coercion. The arrangement for the sale of 2 lakhs copies with FMLC was a result of a Memorandum of Understanding. Ld. Counsel pleaded to allow the Appeal. 6. Ld. Counsels for the Respondents stated that Kukkatpally Police Station, under the Cyberabad Commissionerate registered FIR da....
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....ed a number of immovable properties wherein proceeds of crime were diverted. It was further revealed that Rs. 5.5 crores were received by the Appellant M/s Mind is King in its two bank accounts in HDFC Bank (Rs. 1 crore) and Kotak Mahindra Bank (Rs. 4.5 crores). The balances in the two accounts as stated in paragraph 1 of this Order were attached. The said amounts were received from M/s FMLC. 8. Ld. Counsels for the Respondents stated that in his statement dated 24.06.2019 the Appellant Shri Deepak Sharma admitted that M/s Mind is King was used by Shri Bansi Lal to park the proceeds of crime. Moreover, his so-called book Mind is King was to be part of the Kit which was given at the time the person joined the Scheme. Appellant Shri Deepak Sharma also admitted having known Shri Bansi Lal from the days he conducted property business, who subsequently gave a proposal to form a Partnership Firm, M/s Mind is King. Ld. Counsels contended that the Firm was setup as a facade. Shri Sharma also revealed that amounts like Rs. 50 lakhs were routed to another Firm M/s Make Way India. 9. Ld. Counsels for the Respondents clarified that there were strong reasons to believe for issuance of the....
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....ection 420 read with Section 120 B of IPC, show that pyramid structure was created in a manner of Multilevel Marketing so as to fleece the ordinary persons, who joined their scheme. The scheme was being run mainly by Shri Radhe Shyam and Shri Bansi Lal. They associated their close relatives and created other firms to run the scheme and collect funds out of the persons who were so cheated. In order to layer the proceeds of crime new bank accounts were opened through other firms. M/s Mind is King acted as one such firm which lent its accounts for receiving the flow of funds from M/s FMLC. 12. The Appellant Shri Deepak Sharma in his statements dated 11.06.2019, 24.06.2019 and 25.06.2019 admitted having known Shri Bansi Lal in a business relating to properties. Consequently, a partnership firm M/s Mind is King was formed. The transfer of funds to its accounts was camouflaged as advance payments for the supply of two lakh copies of a book titled Mind is King, which Shri Deepak Sharma claimed to have written. Shri Deepak Sharma admitted that even after formal withdrawal of Shri Bansi Lal as partner of the firm, he continued to exercise control over the financial operations through ora....
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....50 from 32,86,123 active customers. The prima facie violation of Office Memorandum No. 21/18/2014-IT (VOL-II) dated 09.09.2016 issued by Ministry of Consumer Affairs, Food and Public Distribution, Government of India, New Delhi was obvious. The investigations have also revealed that the product given to the members at the time of their joining had no significance for these members. It is thus obvious that the material available before the Issuing Authority of PAO had nexus with the criminal activity relatable to the Scheduled offence. The fact that there was transfer of Rs. 5.5 crores from M/s FMLC to the two bank accounts of the Appellant Firm M/s Mind is King has been brought out in the investigations. Therefore, the Deputy Director (Issuing Authority) of the Respondent Directorate, entertained belief of a prudent and reasonable person. It is not mere ipsi dixit of the Officer. The satisfaction of the Deputy Director is subjective satisfaction but based on the material available with him. While the sufficiency of the reasons for the belief cannot be a matter of enquiry by a Court, we find that the material available with him was neither extraneous not irrelevant for invoking Sub-....
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.... under this section is stayed by the High Court, shall be excluded and a further period not exceeding thirty days from the date of order of vacation of such stay order shall be counted. (2) The Director, or any other officer not below the rank of Deputy Director, shall, immediately after attachment under sub-section (1), forward a copy of the 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 sub-section or on the date of an order made under 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 sub- section (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 enti....
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....e legislature intended it to be." 15. The Hon'ble Supreme Court has again made the following observations in the Judgment dated 10.01.2014 in the matter of Hardeep Singh and Ors. Vs. State of Punjab and Ors. [MANU/SC/0025/2014] in paragraphs 39, 40 and 41 of the Judgment: - "39. To say that powers under Section 319 Code of Criminal Procedure can be exercised only during trial would be reducing the impact of the word 'inquiry' by the court. It is a settled principle of law that an interpretation which leads to the conclusion that a word used by the legislature is redundant, should be avoided as the presumption is that the legislature has deliberately and consciously used the words for carrying out the purpose of the Act. The legal maxim "A Verbis Legis Non-Est Recedendum" which means, "from the words of law, there must be no departure" has to be kept in mind. 40. The court cannot proceed with an assumption that the legislature enacting the statute has committed a mistake and where the language of the statute is plain and unambiguous, the court cannot go behind the language of the statute so as to add or subtract a word playing the role of a political ref....
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....ral requirement that the Deputy Director has to communicate the reasons to believe recorded under Section 5 of PMLA, to the Appellants. Since there is no provision under the statute for pre decision hearing coupled with the provisions therein of the PAO being valid only for 180 days and the fact that the Appellants were heard by the Ld. Adjudicating Authority, we do not find that the provisions of Section 5 were contravened. 17. The attachment of the immovable properties of the Appellant Shri Deepak Sharma and Smt. Sunil Sharma valued at Rs. 24 lakhs each had been made since the Appellant Firm M/s Mind is King had received tainted money of Rs.5.50 crores from M/s FMLC. However, on the date of passing of the PAO balance of Rs. 4.64 crores and of Rs. 42,213/- were available in the Bank Accounts in Kotak Mahindra Bank and HDFC Bank respectively. In respect of the balance of proceeds of crime, the Appellant Shri Deepak Sharma had stated that an amount of Rs. 50 lakhs were transferred to the Account of M/s Make Way India Pvt. Ltd. Therefore, the said two immovable properties of the Husband and Wife were provisionally attached as 'value thereof', notwithstanding that these two propert....