TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1642
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....r referred to as "PMLA."). 3. Allegation in the predicate offence is that during April 2015 and March 2016 accused persons have entered into criminal conspiracy to fraudulently avail Letters of Credit from Corporation Bank, Kellys Branch, Chennai. (Now Union Bank of India) by submitting false invoices/ documents to the Bank and in order to cause wrongful loss to the Bank. CBI filed final report and this criminal case is numbered as C.C.No.2453 of 2021. The petitioner/A4 is not arraigned as accused in predicate office. He has been implicated only in the PMLA case. 4. In this background, learned counsel for petitioner would mainly contend that period of alleged offence are confined to April 2015 and March 2016. Therefore materials relied on by Enforcement Directorate for implicating the petitioner as an accused cannot be sustained. When CBI has investigated fixing the period during which alleged offence occurred, Enforcement Directorate cannot expand the period for widening investigation under PMLA. Since allegations set out in the complaint are beyond the period confined by CBI in predicate offence, the petitioner is entitled for discharge. Petitioner has not been arraigned as....
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....ring. The said position has been settled by the Hon'ble Supreme Court of India in the case of Vijay Madanlal Choudhary vs. Union of India reported in 2023 (12) SCC 1. The scope of discharge under Section 227 of Cr.P.C cannot be expanded by the Courts, so as to appreciate the entire evidence or documents. If sufficient grounds are available to the satisfaction of Court, then alone discharge of accused is to be considered. 8. Let us first consider the final report filed by CBI in CC.No.2453 of 2021. Relevant paragraphs of the final report are extracted hereunder: 14. Investigation revealed that M/s.SLO Industries Limited represented by Shri.Anil Kumar Ojha (A-2) approached then Corporation bank, Kelly's Corner Brachy, Chennai (Now Union Bank of India) and was initially sanctioned with term loan of Rs. 2,95 Crs. CC(Hyp.) of R.1,75 Crores and LC limit of Rs. 1.75 crores during September 2003 by the bank for settling up M.S.Ingot manufacturing unit with the capacity of 6 Tonnes. Subsequently, the above limits sanctioned to the borrower company were reviewed renewed from time to time and enhanced till 2014 from Rs. 6.45 crores in the year 2003 to Rs. 205.10 crores in ....
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.... OF CAUSE OF ACTION UNDER THE PREVENTION OF MONEY LAUNDERING ACT, 2002. The complainant submits that the condition precedent to investigate the offence of money laundering by the Complainant/ Directorate of Enforcement, either there should be a FIR or Police Report under Section 173 of the Cr.P.C or a Complaint, in respect of schedule offence under the PMLA, 2002. The PMLA, 2002 is an Act to prevent money laundering and to provide for confiscation of property derived or obtained directly or indirectly from or involved in any process or activity connected to process of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property. Since, Sections 120B, 420 and Sections 471 of the Indian Penal Code, being the schedule offence under the Prevention of the Money Laundering Act, 2002, enquiries were initiated under the PMLA against, the accused persons after recording brief facts of the case in ECIR/CEZO-1/03/2019 dated 03.07.2019. 7. Investigation by Enforcement Directorate, Chennai Zonal Office - 1. 7.1 Certain offences committed by the said entities through their representatives and the said individuals i....
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....nstructed area at Ward No.17 Churu. Rajasthan. Ashok Kumar Sharma 557000 1573600 2. 2014001213 19.02.2014 Land measuring 27.6 sq. meter, at Ward No.17 Churu.Rajasthan. Ashok Kumar Sharma 474000 1260750 TOTAL 10,31,000 28,34,350 7.8.3 Shri Ashok Kumar Sharma, Director (17-17-2003- 18-07-2014) of SLO vide his statement dated 21-09-2020, interalia, stated that he came to Chennai during 2000-2001 to work with Anil Kumar Ojha's father in his company, M/s.Shri Mahalakshmi Metal & Scrap Processing Pvt. Ltd., which was into Rolling Mill business. He used to take care of the workers, handle loading & unloading of goods. The factory was situated at Tiruvottiyur, Chennai. Later, the factory was closed and a new company, M/s.SLO Industries Limited was established whose factory is at Ponneri, Thiruvallur. He was made one of the Directors of the company by Shri Anil Kumar Ojha. But he was only a namesake Director since he was not involved in any of the administrative or financial decision making of the company. Shri. Anil Kumar Ojha used to decide and take all the important decisions. He resigned from the company in the year 20....
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....used to make fake bills, challans as per the instructions of Shri Anil Kumar Ojha with the help of different agents as and when instructed by Shri Anil Kumar Ojha and there were no movement of goods. He also helped Shri Anil Kumar Ojha in sending money/ funds to various shell companies and also used funds for the purposes not meant to be used for. Two properties, one old Shop measuring at 198 sq.ft and 1st floor constructed area at Ward No. 17 Churu. Rajasthan having guideline value of Rs. 15,73,600/- and a land measuring 27.6 sq. meter, at Ward No. 17 Churu. Rajasthan having guideline value of Rs. 12,60,750/- were purchased by him and when asked as to how he purchased these two properties, he did not explain his source of fund and merely stated that these two properties were purchased with the help of his brother in law (Jija) Shri Anil Kumar Ojha. As these two properties acquired by him, was found to be derived from proceeds of crime, and hence both properties were attached vide Provisional Attachement Order No. 02/2020 dated 06.10.2020. He, by his acts and omission, acted as conduit in facilitating Shri Anil Ojha in diverting the fund, in generation of fake bills and also allowi....
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....t be dependent upon any orders passed in respect of the scheduled offence, and the trial of both sets of offences by the same court shall not be construed as joint trial; " 14. In view of the above provision investigation, complaint (charge sheet) and trial under PMLA is independent and shall not depend upon any orders passed in predicate offence case. Therefore, contention of petitioner that investigations are to be restricted by Enforcement Directorate based on the predicate offence investigation is unacceptable. Money laundering investigation if confined based on predicate offence, predicate offence investigation, objective of PMLA will be defeated. Money laundering is causing injury to the economic development of our great Nation. It significantly impact economic policy and its sustainability. That apart, money laundering are being done through various modes and experts investigation into the said offence is of paramount importance. Thus, investigation are being conducted through experts from various fields to trace the money laundering offence. Any restriction in investigation of money laundering offence would defeat the spirit of PMLA. 15. A holistic reading of the prov....