TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 306
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....ppeal under Section 26 of the Prevention of Money Laundering Act, 2002 (in short "the Act of 2002"), a challenge has been made to the order dated 01.06.2023 passed by the Adjudicating Authority confirming the Provisional Attachment Order ("PAO"). Brief facts of the case: 2. An FIR was registered by the CBI, ACB Chandigarh against Sonu Arora & Rajan Gupta, Directors of M/s E C Blades and Tools Pvt. Ltd., Chandigarh, Praveen Vyas apart from Pavan Kumar Singh and Vinod Kumar and the officer of Chittaranjan Locomotive Works ('CLW') Indian Railways, West Bengal. The FIR was registered on a complaint and information received by the CBI, Chandigarh that Sonu Arora, Rajan Gupta and approved vendor of CLW, Indian Railways entered into a crimin....
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....f Indian Railways visiting Varanasi and in other places. 4. In the contract dated 14.12.2021 for supply of 37 set of bogey frames, the CLW may during the period of execution of the contract, enhance the quantum of work by 30% on awarded rate of contract. To fetch the opportunity of the said term of the tender, Sonu Arora & Rajan Gupta being Directors of the M/s. E C Blades and Tools Pvt. Ltd. and Praveen Vyas, in his turn as representative of M/s. EC Blades and Tools Pvt. Ltd., persuaded Ravi Shekhar Sinha, IRSS (1986), who was posted as Principal Chief Material Manager (PCMM), CLW for enhancing of the quantity. 5. The complainant has brought on record the material collected investigation conducted and the statements recorded u/s. 50(....
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.... by the Directors of the appellant's Company in getting the award for supply of 11 bogeys. It was in terms of the contract entered between the two parties for supply of railway bogey to the CLW. The term of the contract was to provide enhancement by 30% at the discretion of the contracting party and using the said clause, the appellant was asked to supply 11 sets of bogeys in addition to supply of 37 set of bogey frames to CLW. The appellant did not offer any bribe to the officers of CLW. The allegation has been made for extension of bribe of Rs. 1,80,000/- through Praveen Vyas while there was no such employee working with the appellant company and otherwise it is a fact that subsequent to the contract for supply of 37 set of bogey frames, ....
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....involving registration of the FIR in reference to the bribe extended to the Railway officers through employees of the appellant was caused for recording the ECIR. After initiation of the investigation, PAO was passed to protect the proceeds of crime for value equivalent to the amount for supply of additional bogey frames involving a sum of Rs. 1,80,77,400.00. The amount was received in four tranches. However, the allegation is for supply of additional 11 bogey frames after extension of undue services and bribe to the Railway employees involving Rs. 1,80,000/-, The allegation aforesaid has been refuted by the Ld. Counsel for the appellant, however, with the fair admission that till date the accused have not been discharged, rather, matter is....
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....en instructed to Shri Vinod Kumar to collect the money from Chandigarh and Shri Pavan Kumar Singh was to collect it from Varanasi and deliver it to Shri Ravi Shekhar Sinha. A complete chain was traced out coupled with recording of the statements of the persons involved therein. Thus, we are not inclined to cause interference in the impugned order on the ground that no crime has been committed. 15. The issue now remains about the provisional attachment of a sum of Rs. 1,88,77,400/- received by the appellant on supply of 11 additional bogey frames to CLW. Ld. Counsel for the appellant vehemently submitted that the amount aforesaid was not representing proceeds of crime, rather, it was payment towards supply of 11 additional bogey frames an....
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....parties and accordingly there was nothing wrong in asking for the additional railway bogey frames to the extent of 30% of the volume of which order was given. However, facts aforesaid cannot be taken simpliciter because it involves an element of bribe of Rs. 1,80,000/- against the appellant. It may be supply of additional bogey frames was in consonance to the agreement but the officer was asked to favour the appellant and for which bribe of Rs. 1,80,000/- was alleged to have been given. 17. In the background aforesaid, we need to balance the equity and in fact order for provisional attachment cannot be interfered only because supply of additional bogey frames was in consonance to the terms of the agreement. We cannot ignore element of br....