TaxTMI 
TaxTMI 
2026 (2) TMI 184
X X X X Extracts X X X X
X X X X Extracts X X X X
....lots Sr. No. Deed No./ Date Name Description of Property Value (Rs.) District, Sub- Registrar Office 1. 3477/ 06.03.2012 Anita Devi Khata No.- 287, Plot No.- 693, Area - 19.81 Dec., Thana No. 194, Mauja - Bankat, Circle - Motihari Consideration: 1,00,000 Stamp Fee: 6000 Registration: 2,377 Total: 1,08,377 Motihari 2. 5607/ 10.04.2012 Anita Devi Khata No. 187, Plot No.- 693, Area - 13.33 Dec., Thana No. 194, Mauja - Bankat, Circle - Motihari Consideration: 66,000 Stamp Fee: 3,960 Registration: 1,697 Total: 71,657 Motihari 3. 6596/ 28.04.2012 Anita Devi Khata No. 187, Plot No.- 693, Area - 3.30 Dec., Thana No.- 194, Mauja - Bankat, Circle - Motihari Consideration: 1,04,000 Stamp fee: 6,240 Registration: 2,582 Total: 1,12,822 Motihari 4. 16183/ 06.09.2012 Anita Devi Khata No. 187, Plot No.- 693, Area - 9.90 Dec., Thana No.- 194, Tauzi No. 886, Area - 9.90 Dec., Mauja - Bankat, Circle - Motihari Consideration: 1,25,000 Stamp: 7,500 Registration: 2,977 Total: 1,35,477 Motihari 5. 11714/ 12.08.2011 Bikash Kumar Khata No.- 170, Khasra No.- 273, Area - 2.475 Dec., Mauja - Chhota Bariarpur,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 0.60 Total 7 Acre 69 Dec. B. Movable Properties B1. Vehicles S. No. Vehicle / Registration No. Owner Date of purchase / Registration Value (in Rs.) Registration Fee etc. (in Rs.) Insurance Paid (in Rs.) 1. Maruti alto car - BR06K-6013 Shri Ramadhar Ram 04.10.2005 2,69,087.88 33,743.13 12,657 2. Hero Honda Glamour, Motor Cycle - BR 29 M - 4248 Bikash Kumar 09.04.2013 53,162/- 3,639/- 1,405/- 3. Maruti Swift Car - BR 06 BS 2451 Bikash Kumar 15.09.2018 / 27.09.2018 5,89,448/- 62,611/- 31,498/- 4. Honda CBR - 250 Motor Cycle - BR 05F - 8460 Bikash Kumar 26.07.2012 1,33,261/- 8,775/- 3,151/- Total 10,44,958.88 1,08,768.13 48,711 Total (Value + Registration + Insurance) 12,02,438/- B2. Bank Accounts S. No. Account Number Bank Name of The Account Holder Available balance as on 29.03.2019 1. 1586309784 (Old - 11070) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uption Act, 1988 and Section 109/120 (B) of IPC, 1860 by the ECU, Bihar, Patna before the Hon'ble Special Judge (Vigilance), North Bihar, Muzaffarpur. Scrutiny of the said FIR/Charge sheet revealed that though the commission of these offences, Ramadhar Ram has acquired huge properties in his name and in the name of his family members. Analysis of letter received for SP (EOU), and Charge-sheet dated 04.10.2017 revealed that Shri Ramdhar Ram, Barairpur, P.S. East Champaran, Bihar joined PHED, on 12.07.1979 as Junior Engineer. He was married to Anita Devi, who is a housewife. His son is married to Ankita and both are unemployed. Ramadhar Ram has acquired huge properties worth Rs. 82,10,661/- through the corrupt practices during his service tenure till the date of search/FIR on 18.06.2013 in his name and in the name of his family members disproportionate to his legal income. During his service tenure, Ramadhar Ram, received total salary of Rs. 36,26,399/- and had total income of Rs. 49,73,755/- from all sources (including salary). He acquired properties to the tune of Rs. 1,00,95,588/- during the check period. Disproportionate assets of Ramadhar Ram is calculated as under: Inc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....been concealed and invested for purchase of property in the name of Pinki Kumari @ Ankita Kumari. Investigation under PMLA reveals that Ramadhar Ram has financed construction of two houses - in the name of himself and the second one is in the name of his son, Bikash Kumar. The valuation report of the government valuer as revealed by the letter by dated 22.02.2017, the construction cost of the houses to be Rs. 36,85,571/. However, Ramadhar Ram, during his statement recorded under Section 50 of PMLA on 07.01.2019, he declared the said construction cost to be in the range of Rs. 8-9 Lakhs approximately. Further, he has stated that the said investment has been made out of his agricultural and dairy income. However, no evidence regarding agricultural/dairy income has been submitted by Ramadhar Ram/family members. Moreover, no agricultural income has been declared in the ITR. Thus, it is evident that the cash has been utilized, directly, for the acquisition of the above immovable properties. Further, analysis of statements of various persons, recorded under section 50 of PMLA, as discussed below, also reveals that cash so utilized for the acquisition of above immovable properties a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ma Motorcycle bearing Registration No. BR-06-W-9116. During statement under Section 50 of PMLA, Bikash Kumar stated that Maruti Car bearing Registration No. BR01AZ-0283 in his name has been provided by his father-in-law as gift, but he failed to produce any gift deed or any document in this regard. On enquiry, vide e-mail dated 27.03.2019, M/s Karla Automobiles Pvt. Ltd, Patna intimated that the said vehicle, was billed in the name of Bikash Kuamr vide sale invoice no. 003/ VSL10001486 dated 30.11.2010, and the payment of Rs. 8,11,026/- has been made in cash by money receipt no. REC10003645 dated 30.11.2010. Bikash Kumar sold the said car and purchased a new Maruti Swift Car - Registration No. BR 06 BS 2451 on 15.09.2018 for Rs. 5,50,000/- approx. He further stated that a finance of Rs. 3 Lakh was availed from Cholamandalam Investment and Finance Company, Motihari and downpayment of remaining Rs. 2,50,000/- was made from the sale proceeds of Maruti SX 4 Car. For this an EMI @ Rs. 11,000/- is being deducted from his savings bank account maintained at IDBI bank. From the above, it is clear that illegal unaccounted cash has been utilized for the purchase of vehicles. The source ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re the year 2012. During investigation, it is revealed that during the period of acquisition of these properties, he was not having any income of his own. This makes it evident that these properties have been purchased out of the ill-gotten money of Ramadhar Ram. Thus, it is revealed that Mr. Ramadhar Ram has acquired huge properties in his name and in the name of his family members. A total of 10 plots totally valued at Rs. 39,55,490/-, house valued at Rs. 8,85,130/- and ancestral agricultural land costing Rs. 24,92,000/-. In addition to this, 4 vehicles costing Rs. 12,02,438/-, 12 bank accounts having a total balance of Rs. 1,84,689/- and 4 insurance policies worth Rs.1,41,431.81, totalling to Rs. 88,61,108/- have been identified which are liable to be attached. Pursuant to the above proceedings in the aforesaid in view of the statements and Chargesheet, Directorate of Enforcement passed the Provisional Attachment Order No. 02/2012 dated 31.03.2019. Thereafter, Original Complaint (OC) No. 1137/2019 was filed before the Adjudicating Authority for confirmation of the aforesaid Provisional Attachment Order. After perusal of the OC and being satisfied with the same, the Adju....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt of Bihar, the income of the Appellant no. 1 from his Government service was Rs. 5,97,000, income from agriculture was Rs. 2,62,000 and from other sources was Rs. 65,000, totalling to Rs. 9,24,728 per annum. He stressed that Appellants might be avoiding payment of income tax by not revealing the income from all the sources, but it does not imply that the said properties were acquired from any proceeds of crime, as alleged. He submitted that if the said income was duly considered by the Vigilance Department and economic offences unit 3, Patna, Bihar then in fact Appellant no.1 is not in possession of any disproportionate assets as alleged. He argued that the valuation report of the Government valuer dated 22.09.2017 reflects the construction cost of the House as Rs. 36,85,571, which is highly exaggerated, as the actual cost of construction incurred by the Appellant is just Rs. 7 lakhs as per valuation report dated 25.06.2013 issued by Er. Dilip Kumar Sinha. He argued that Respondent ED has not conducted any independent investigation qua the alleged commission of predicate offence of possession of disproportionate assets to the known sources of income, and thereby, Respondent ED ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er the claimants of attached properties are genuine, or part & parcel of conspiracy. The first two points can be inferred by the ED on the basis of allegations made in the FIR and/or Police report under Section 173 CrPC. The ED has to confine its inquiry/investigation qua the remaining four points mentioned above. Accordingly, we are of the view that ED is not required to conduct any investigation for the predicate offence. ED can only point out any glaring mistake, or lacunae in the said investigation conducted by police/CBI, which may come to its knowledge while conducting the investigation under PMLA. However, ED cannot arrive at different conclusion qua the predicate offence and quantum of fraud/POC, while conducting investigation for PMLA, as it is not a supervisory investigating agency. Thus, this contention is decided against the appellant, as no independent investigation is required to be made by the ED, to assess the quantum of DA. 7. Now, we will decide issue no. ii) to iv), being interconnected. As per Section 5 (1) of PMLA, 2002: "Where the Director or any other officer not below the rank of Deputy Director authorised by the Director for the purposes of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome and exaggerated valuation report regarding cost of construction needs to be subjected to examination & cross-examination of the appellants, alongwith documentary evidence during the criminal trials in charge-sheet and prosecution complaint cases. Appellants can also take the said plea, before the trial courts at the stage of consideration of charges, if charges are yet to be framed. We are handicapped to express any view on the quality of investigation conducted by the respective agencies, as this Appellate Tribunal cannot usurp the said powers, in absence of any charge-sheet and prosecution complaint before us. Ld. Counsel for the Respondent ED pointed out that the PAO was passed by the Deputy Director, Directorate of Enforcement, Patna u/s 5(1) of the PMLA, 2002, in respect of the properties covered under Section 2(1)(u) of the Act, which are POC, as the same were derived out of the proceeds of crime or value thereof in terms of such properties. Moreover, there is apparent apprehension of alienation of these properties seeing the fact that after registration of the FIR by CBI, the Respondent ED also recorded ECIR for conducting investigation for the offence of money laun....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Kumar himself admitted to have invested Rs. 13 Lakh taken from his father in the construction of the house during the check period, and the same was sold off for Rs. 45 Lakhs and purchased a new plot in the name of his wife Pinki Kumar. This clearly reflects the purchase of the plot from the proceeds of crime of Ramadhar Ram. The scrutiny of statement of bank accounts of Bikash Kumar reveal huge cash deposits during the check period. Since, Bikash Kumar was not doing any business during the said period, it can clearly be deduced that the cash deposits would have been from the illegal sources of his father Ramadhar Ram. The fabrication of documents regarding taking of loan for purchasing two plots purchased vide sale deed no. 11574 dated 10.08.2011 & sale deed no. 11714 dated 12.08.2011 appears to be false. The agreement dated 30.07.2011 & affidavit dated 20.08.2016 produced in support of the loan reveals that the agreement paper is having signature of Bikash Kumar only, whereas both parties should sign the same. On the front page of agreement, a total sum of Rs. 8.04 Lakh on different pages Rs. 8 Lakh only have been mentioned by Bikash Kumar on the second page. This non-fulfill....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duled offence or the value of any such property' [or where such property is taken or held outside the country, then the property equivalent in value held within the country] [or abroad]; [Explanation.- For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence]. xx xx xx xx xx xx xx xx xx xx" The perusal of the definition reveals three limbs of the definition out of which first part refers to the property acquired or derived directly or indirectly by a person relating to the criminal activity to a scheduled offence. The second part includes "the value of any such property". The second part is generally mixed with third part for giving interpretation. However, an elaborate judgment on the issue has been given by the Delhi High Court in the case of Prakash Industries Ltd. v. Directorate of Enforcement reported in 2022 SCC OnLine Del 2087 and in this regard, Para 105 of the judgment in the case of Prakash Industries Ltd. (Supra) ....