TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 252
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.... Sumer Singh Boparai, Advocate, Mr. Sirhaan Seth, Advocate, Mr. Suvranil Saha, advocate For the Respondent(s) : Ms. Nattasha Garg, Advocate, Mr. Chandra Prakash, Advocate and Mr. Abhinav Kumar, Advocate ORDER Set of appeals have been filed under Section 26 of the Prevention of Money Laundering Act, 2002 (in short "the Act of 2002") to challenge the order dated 18.08.2022 passed by the Adjudicating Authority confirming the Provisional Attachment Order ('PAO'). Brief facts of the case: 2. An FIR was registered by the CBI, Kolkata against Shri Amit Kumar Dhar, the then GM, Kunustoria Area, ECL (Easten Coalfield Ltd.), Shri Jayesh Chandra Rai, General Manager, ECL, Kajora Area, Shri Tanmay Das, Chief of Security, ECL, Asansol and many other officials of ECL along with Shri Anup Majee @ Lala and unknown officials of ECL, CISF, Railway and other department for the commission of cognizable offence under Section 120B, 409 of the Indian Penal Codem 1860 (IPC) and Section 13(2) r/w section 13(1)(a) of the Prevention of Corruption Act, 1988. The allegation was that the accused, Shri Anup Majee had collected/generated huge amount of proceeds of crime from the schedule offence in....
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.... First batch of appeals 7. Ld. Counsel for the appellants submitted that without any evidence for involvement of the appellants for commission of crime, their properties have been attached. The respondent proceeded to rely on the statement of Shri Niraj Singh recorded under the Income Tax Act, 1961. It could not have been relied in the proceedings under the Act of 2002. The respondent relied on the statement of Shri Niraj Singh to connect the appellant for commission of crime and for receipt of proceeds of crime. The respondent could have relied the statement recorded under Section 50(2) and Section 50(3) of the Act of 2002 and not the statement recorded under separate statute. If the statement of Shri Niraj Singh is eliminated, there was no material to connect the appellants with commission of crime and receipt proceeds of crime, thus, on the aforesaid ground itself, the impugned order deserves to be set-aside. 8. Ld. Counsel for the appellants, further, submitted that the entire proceedings were vitiated on account of non-compliance of Regulation 3 of the Adjudicating Authority (Procedure) Regulation, 2013 (in short "the Regulation of 2013"). As per Regulation 3 of the Regu....
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....hich proceedings are pending before the Special Courts. In the instant case, none of the properties under the provisional attachment are subject matter of the proceedings before the Special Courts. 12. Ld. Counsel for the appellants also referred the order passed by the High Court of Delhi in the Anticipatory Bail application of Shri Anup Majee. The order is sufficient to cause interference in the impugned order and accordingly release the property under provisional attachment. It is more so when no independent evidence was collected by the respondent to make out a case showing involvement of the appellants in commission of crime or holding them to be recipients of proceeds of crime. A reference to the judgment of the Apex Court in the case of K.T.M.S. Mohd. And Another versus Union of India reported in (1992) 2 SCC 178 was given. 13. Ld. Counsel for appellants accordingly prayed for acceptance of first batch of appeals filed by the individuals. Ld. Counsel for the appellants did not raise any other issue than referred to above despite an opportunity to raise any other factual or legal issues in reference to the pleadings of the appeals. Second batch of appeals 14. The ....
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....nce or for receipt of proceeds of crime. 18. To consider the issue raised by the appellants in reference to the statement of Shri Niraj Singh, we have gone through the record and find that summons were caused to Shri Niraj Singh but he did not respond to the summons. The details of the summons issued to him have been given in the impugned order coupled with a complaint under Section 174 of CrPC for non- compliance of summons by Shri Niraj Singh. The cognizance of the complaint has been taken by CMM, Patiala House Courts, New Delhi. Thus, at the outset, it cannot be said that the respondent did not make an effort to summon Shri Niraj Singh for recording of his statement. Furthermore, PAO and order passed by the Adjudicating Authority is not solely based on the statement of Shri Niraj Singh and diary recovered during the course of search. 19. The statement of Shri Pravasish Chakraborty, Director of M/s Brightstar Tie-up Pvt Ltd has been recorded on 16/04/2021. It was stated that he was made Director of M/s Brightstar Tie-up Pvt Ltd by Shri Anup Majee. He was paid Rs. 3000/4000 per month by Shri Anup Majee for signing documents of the company. Shri Anup Majee used to send one Sh....
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....ollected from illegal coal business into white money. He had provided KYC details of his known persons for making directors and address for purchasing jamakharchi companies to Shri Niraj Singh. He also admitted to the transfer of funds in the bank accounts of Shri Joy Majee (Nephew of Shri Anup Majee), Smt Bandana Pattnayak (Middle Sister), Shri Ashok Pattnayak (Bandana Pattnayak's husband) from bank accounts of his jamakharchi companies for the purpose of purchasing properties. Shri Niraj Singh has deposited the cash for purchase of four companies out of the money earned from agriculture, fishery and land brokerage amounting to Rs. 30-40 crore & the rest of the amount was collected through the coal trading but he has no evidence related to income earned from agriculture, fishery and land brokerage. He has not declared the said income in his ITR. 24. Shri Arup Majee in his statement dated 02/12/2021 recorded under section 50(2) of the Act of 2002 stated that he is director in M/s Evershine Vinimay Private Limited, M/s Majee Iron & Minerals Private Limited, M/s Mark Enclave Private Limited, M/s Jai Shree Ambhay Industries Pvt Limited, M/s Sonic Thermal Arikate Limited, M/s Ma....
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....nd M/s Sungold Vincom Pvt Ltd for the purpose of purchasing properties in his name. He purchased a flat situated at Mumbai in his own name from above mentioned PNB bank a/c. 26. Shri Bidyut Pattanayak in his statement dated 17/11/2021 recorded under section 50(2) of the Act of 2002 inter alia stated that his all bank account are maintained by his uncle Shri Anup Majee's staff. The properties mentioned in annexure-A to his statement dated 17/11/2021 were purchased in his name from above mentioned PNB bank a/c and cash payments were arranged by his uncle Shri Anup Majee. Shri Anup Majee can explain all transactions mentioned in his PNB a/c 0714010020013. He is not aware about his uncle Shri Arup Majee's business. 27. Smt Rupali Majee in her statement dated 01/12/2021 recorded under section 50(2) of the PMLA, 2002 inter alia stated that her all bank account were maintained by her husband Shri Anup Majee's staff. In her PNB a/c No. 0714010104890 Rs. 85,23,000/- were credited from Shri Anup Majee's jamkharchi companies namely M/s Starrose Marketing Pvt. Ltd, M/s Bhanupriya Projects Consultants and M/s Sungold Vincom Pvt Ltd for the purpose of purchasing properties ....
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....ak in her statement recorded on 04/12/2021 stated that her all bank account are maintained by his brother Shri Anup Majee's staff. In her PNB a/c No. 0714010124676 Rs. 3,55,37,200 /- credited from Shri Anup Majee's jamkharchi companies namely M/s Starlight Devcon Private Limited, M/s Brightstar Tia-Up Pvt. Ltd and M/s Sungold Vincom Pvt Ltd for the purpose of purchasing properties in her name. The properties mentioned in annexure- A to her statement dated 04/12/2021 were purchased in her own name from above mentioned PNB bank a/c. The cash payments were arranged by his brother Shri Anup Majee. She has some agriculture income but same has neither been declared in her ITRs nor does she have any documentary evidence in this regard. Shri Anup Majee can explain all transactions mentioned in her PNB a/c 0714010124676. She is not aware about her brother Shri Arup Majee's business. 31. Shri Pradyut Pattanayak in his statement dated 04/12/2021 stated that all his bank account are maintained by his uncle Shri Anup Majee's staff. In his PNB a/c No. 0714010124669 Rs. 39,06,100/- was credited from Shri Anup Majee's jamkharchi company namely M/s Sungotd Vincom Pvt Ltd for the ....
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....avation of coal and transportation. The appellants failed to disclose source of the companies for themselves for purchaser of the properties. It is by putting cash in the bank account without disclosure of source for cash. 34. Ld. Counsel for the appellants referred to the Bail Order passed by the High Court of Delhi to show that Shri Anup Majee was not involved in commission of crime. At the outset, it is to be clarified that the bail order can be passed after prima facie satisfaction of the Court to find out whether a case is made out for grant of bail or not. Prima facie opinion recorded therein cannot be taken to be the final word, otherwise the appellant cannot pursue his case for quashing of the proceedings based on the opinion recorded in the bail order. The bail order cannot nullify the proceedings initiated pursuant to the complaint and otherwise the stage on which bail was granted becomes relevant. In many cases, bail application moved and accepted even before the completion of the investigation and other cases it is subsequent to the completion of the investigation. Therefore, the bail order does not absolve any accused from commission of crime. Thus, arguments in ref....
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....objection of hypothetical technical nature raised in ignorance of the order passed by the Adjudicating Authority. It was only to mislead this Tribunal. Accordingly, the argument in reference to Regulation 3 of the Adjudication Authority (Procedure) Regulation 2013 cannot be accepted. 38. The next question raised by the appellant was in reference to Section 8(3)(a) of the Act of 2002 and to press upon the issue, a reference to the judgment of High Court of Delhi in Mahender Kumar Khandelwal (supra) was given. For appreciation of arguments, we may quote Section 8(3)(a) of the Act of 2002 and is quoted thus: 8. Adjudication xx xx xx xx xx xx xx xx xx xx xx (3) Where the Adjudicating Authority decides under sub-section (2) that any property is involved in money-laundering, he shall, by an order in writing, confirm the attachment of the property made under sub section (1) of section 5 or retention of property or 3[record seized or frozen under section 17 or section 18 and record a finding to that effect, whereupon such attachment or retention or freezing of the seized or frozen property] or record shall- (a) continue during [investigation for a per....
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....visional attachment order, may end up in being named as accused in the complaint to be filed by the authorised officer concerning offence under Section 3 of the 2002 Act. 40. The proceedings under the Act of 2002 for provisional attachment is not necessarily caused only against the accused. It can be against person involved in commission of offence under Section 3 of the Act of 2002 or remain recipient of the proceeds. In the instant case, the appellants have been either named as accused or the recipient of proceeds. It seems that in the light of the judgment of the Apex Court, the Division Bench of the High Court of Delhi stayed the judgment of the Single Bench in the case of Mahender Kumar Khandelwal (supra). 41. The argument was raised that mere stay of the judgement would not vanish the ratio propounded by the Court. We, however, find that the ratio propounded by the Single Bench of the High Court of Delhi in the case of Mahender Kumar Khandelwal (supra) is going against the judgment of the Apex Court and the statutory provision and thus ratio propounded would not be binding, otherwise there would be no sanctity of Article 141 of the Constitution of India. 42. Ld. Coun....
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.... Jagulgachhi, Bhangar, South 24- Parganas 6,06,000 Anup Majee I-1630-02393 14-09-2018 Land 14 Dec situated at Jagulgachhi, Bhangar, South 24- Parganas 5,10,020 Anup Majee I-1902-03678 28-09-2018 Flat Premises No. 28/1 Ward No. 063, Shakespeare Sarani, Kolkata 2,00,06,000 Sumita Majee and Rupali Majee Deed No. PRN No. 23042019051 23-04-2019 Flat No. B-1002, 10th Floor, Gundecha Symphony, OFF, New Link Road, Fun Republic Lane, Andheri (W) Mumbai- 400053 2,06,00,120 Joy Majee I-1403-01588 21-06-2019 Land-37 Dec situated at Digha, Manpura JI No. 72, Neturia 3,33,000 Sumita Majee I-1403-00638 11-03-2020 Land-45 Dec situated at Digha, Nabagram JI No. 71, Neturia 3,84,500 Sumita Majee I-1403-01587 21-06-2019 Land 29 Dec situated at Utarra, Sarbari JI No. 83, Neturia 4,64,000 Sumita Majee OI-1403-1832 10-09-2020 Land-60 Dec situated at Digha, Nabagram Ji No. 71, Neturia 4,80,000 Sumita Majee I-1403- 01050/2020 24-06-2020 Land-20 Dec situated at Khajura, Bundla JI No. 160, Raghunathpur 16,00....
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....r and are quoted hereunder for ready reference: Deed No. 1-1630-01767 dated 09/07/2018- Shri Anup Majee's shell / Jamakharchi company namely M/s Starrose Marketing Private Limited, in which POC amounting to Rs. 31.60 crore was credited in their United Bank A/c No. 71405000851 through accommodation entries during 25/05/2017 to 09/06/2020, transferred Rs. 78,20,000/- to Shri Anup Majee's PNB a/c No. 714010103701during 05/07/2018 to 10/07/2018. Shri Anup Majee paid Rs. 1,98,320/- & Rs. 7,83,760/- on 05/07/2018 to Kumar Foundation for purchase of 24 Dec Land situated at Jagulgachhi, Bhangar, South 24-Parganas. Deed No. 1-1630-01768 dated 09/07/2018- Shri Anup Majee's shell / Jamakharchi company namely M/s Starrose Marketing Private Limited, in which POC to Rs. 31.60 crore was credited in their United Bank A/c No. 71405000851 through accommodation entries during 25/05/2017 to 09/06/2020, transferred Rs. 78,20,000/- to Shri Anup Majee's PNB a/c No. 714010105701doring 05/07/2018 to 10/07/2018. Shri Anup Majee paid Rs. 27,80,060 for purchase of 67.98 Dec ob 06/07/2018 Land situated at Jagulgachhi, Bhapgan South 24-Parganas. Deed ....
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....espectively through, accommodation entries during 25/05/2017 to 25/12/2020. From M/Startose Marketing Private Limited&M/s Starlight Devcon Pvt Ltd's above mentioned bank accounts Rs. 4.50 Lakhs & Rs. 23.26 Lakhs were transferred to Shri Arup Majee (Brother of Shri Anup Majee)'s PNB bank a/c No 14010105792 on 11/09/2018 and 2/12/2018 respectively. Shri Arup Majee paid Rs. 3,63,366/-Rs.90,915/-& Rs. 90,915/- on 13/12/2018 to Prabir Sen, Arabinda Roy & Dinabandhu Roy respectively for purchase of 20 Dec Land situated at Jagulgachhi, Bhangar, OC 15767202 South24-Parganas. For the said purchase. Shri Arup Majee paid Rs. 60,504/- in cash. Deed No. 1-1630-02393 dated 14/09/2018- Shri Anup Majee's shell / Jamakharchi company namely M/s Starrose Marketing Private Limited's United Bank A/c No. 71405000851 &M/s Starlight Devcon Pvt Ltd's PNB a/c No 0714050001212were credited POC amounting to Rs. 31.60 crore & Rs. 37.95 crore respectively through accommodation entries Buring 25/05/2017 to 25/12/2020. From M/sStarrose Marketing Private Limited & M/s Starlight Devcon Pvt Ltd's above mentioned bank accounts Rs. 4.50 Lakhs & Rs. 23.26 Lakhs were transferred....
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..../2019, 1-1403-00638 dated 11/03/2020, 1-1403-01587dated 21/06/2019, 1-1403-1832 dated 10/09/2020 and 1-1403-01050/2020 dated 24/06/2020- Shri Anup Majee's shell / Jamakharchi company namely M/s Starrose Marketing Private Limited's United Bank A/c No. 7140500085, M/s Brightstar Tie-Up Pvt Ltd's PNB A/c No. 0714050001328, M/s Sungold Vincom Pvt Ltd's PNB A/c No. 714050001359 and M/s Sungold Vincom Pvt Ltd's Axis Bank A/c No. 920020040671128 were credited POC amounting to Rs. 31.60 Crore Rs. 50.03 Core Rs. 66.52 Crore & Rs. 1.35 Crore respectively during 25/05/2017 to 13/02/2021 through accommodation entries. From these bank accounts Rs. 2.09 Crore were transferred to Smt Sumita Majee's PNB A/c No. 0714010124690 during 21/05/2018 to 28/08/2020 as per details given below- Table 16: Details of bank account from credit in Smt Sumita Majee's PNB A/c No. 0714010124690 S.No. A/c detail Amount Period 1. M/s Starrose Marketing Limited's United Bank 7140500085 Rs.1,17,50,000/- 01/08/2018 to 13/08/2018 2. M/s Brightstar Tie-Up Pvt. Ltd's PNB A/c No. 0714050001328 Rs. 27,10,400 13/01/2020 to 24/06/2020 3. ....
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.... 72,125 13/08/2019 5,70,500 27/08/2019 2. 1403-01999 dated 24/07/2019 Land-37 Dec situated at Digha, Nabagram Ji No. 71 Neturia 3,70,000/- 3,20,000 24/07/2019 0 50,000 29/07/2019 3. 1403-00936 dated 03/04/2019 Land-6 Dec situated at Bhamuria, Neturia, Purulia 5,00,000/- 3,50,000 03/04/2019 1,50,000 Deed No 1-1403-02027dated 29/08/2017- Shri Anup Majee's shell / Jamakharchi company namely M/s Starrose Marketing Private Limited's United Bank A/c No. 7140500085, M/s Brightstar Tie-Up Pvt Ltd's PNB A/c No. 0714050001328, M/s Starlight Devcon Pvt Ltd's PNB A/c No.714050001212, M/s Sungold Vincom Pvt Ltd's PNB A/c No. 714050001359 and M/s Sungold Vincom Pvt Ltd's Axis Bank A/c No. 920020040671128 were credited POC amounting to Rs. 31.60 Crore Rs. 50.03 Core Rs. 37.94 Crore Rs. 66.52 Crore & Rs. 1.35 Crore respectively during 25/05/2017 to 13/02/2021 through accommodation entries. From these bank accounts Rs. 2.09 Crore were transferred to Smt Sumita Majee's PNB A/c No. 0714010124690 Rs. 1.88 Crore were transferred to Smt. Bandana Pattanyak's P....
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....to Shri Ashok Pattanayk PNB a/c No. 714010124683 as per details given below- Table 20: Details of fund transfer from shell companies of Shri Anup Majee to Shri Ashok Pattnayak and Smt Bandana Pattnayak S. No. Details of a/c from POC transferred A/c details in which amount transferred Name A/C No. Amount Period 1. M/s Brightstar Tie-Up Pvt Ltd's PNB A/c No. 0714050001328 Bandana Pattanyak PNB a/c No. 714010124676 14,50,000 19/03/19 Ashok Pattanyak PNB a/c No. 714010124683 1,74,83,600 18/03/19 & 19/03/19 2. M/s Starlight Devcon Pvt Ltd's NB A/c No.714050001212 Ashok Pattanyak PNB a/c No. 714010124683 1,61,83,600 12/12/18 to 18/03/19 3. M/s Sungold Vincom Pvt Ltd's PNB A/c No. 714050001359 Bandana Pattanyak PNB a/c No. 714010124676 1,50,00,000 14/01.2019 Smt Bandana Pattanyak & Shri Ashok Pattanyak paid following amounts to Smt Aarti Agarwal from their above mentioned bank Dec land Premises No. AP53A, Ward No. Housing, Kolkata Municipal Corporation, PS for purchase of 6.6 Metropolitan Cooperative South 24-Parganas-700105. Table 21: Details of amount transferred....