TaxTMI 
TaxTMI 
2025 (5) TMI 2249
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....ed by the Adjudicating Authority partially confirming the attachment of two immovable properties. 2. The case involves two office units in "Kaledonia" Building of Andheri East, Mumbai purchased by M/s Orlando Trading Pvt. Ltd. and also by M/s Jindal Combines Pvt. Ltd. The main allegation against them is for undervaluation of office units in "Kaledonia". The undervaluation for the office unit No. 503 is for a sum of Rs. 6.25 Crores while for office unit No.304, it is for a sum of Rs. 8 Crores and accordingly attached two properties taking their total value to be Rs. 35.48 Crores based on the rates provided by District Level Committee, Government of Maharashtra. 3. The brief facts to the case pertains to an offence said to have been committed by Shri Rakesh Wadhawan and Shri Sarang Wadhawan, Promoters of M/s Housing Development and Infrastructure Ltd. (M/s HDIL). Shri Rakesh Wadhawan through its entities was having shareholding in M/s Mac Star Marketing Pvt. Ltd. (M/s MSMPL) which was a joint venture company of M/s Ocean Deity Investment Holdings Ltd. (M/s ODIHL) (a company incorporated under the laws of Mauritius). M/s ODIHL was having stakes of 78.09% while 21.91% was held by....
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....pellants in connivance with Shri Rakesh Wadhawan has been confirmed for attachment. Arguments of the appellants: 6. The counsel for the appellant M/s Orlando Trading Pvt. Ltd. submitted that the company has no nexus to the commission of crime and even FIR and ECIR does not disclose any allegation against them in reference to the purchase of office units yet without a predicate offence in reference to the sale of two office units, the order of provisional attachment has been passed. The position of fact is similar in the connected appeal filed by M/s Jindal Combines Pvt. Ltd. Enlarging the argument, it was submitted that the companies had purchased the office units under sale agreement executed by M/s MSMPL though prior to sale transaction, these two office units were under mortgage with Yes Bank and, therefore, Yes Bank wrote a letter to M/s MSMPL on 29.03.2016 for payment of Rs. 10 Crores for release of the property and accordingly the amount was paid in the Escrow Account titled as "Mack Star Marketing Private Limited Escrow Account". M/s MSMPL and Yes Bank then executed a Release Deed dated 28.04.2016 releasing Unit No. 304. It was for a consideration of Rs. 18 Crores and ....
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....unt titled as "Mack Star Marketing Private Limited Escrow Account". On receipt of the payment in Escrow Account, M/s MSMPL and Yes Bank executed a Release Deed dated 22.10.2014 releasing Unit No. 503 and accordingly the possession of the building was given to the appellant company. The ED erroneously taken sale of the property on a lesser price without any allegation in the FIR or ECIR or even the prosecution complaint. It was purely a contractual matter without any allegation of crime yet the office unit has been attached erroneously. The reference of the location and other position was given to show why the two units in the one and same building have different valuation but ignored by the respondents. They have even ignored that the Sub-Registrar, Mumbai while registering the document did not raise the issue of undervaluation of the properties which otherwise remain in their domain, rather the value of the property was assessed strictly as per Circle rate prescribed by the State of Maharashtra. It is further submitted that a suit for cancellation has been filed by M/s MSMPL and is pending which would ultimately govern by the transaction between M/s MSMPLL and the appellant but fo....
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.... Rakesh Wadhawan was managing the affairs, he had taken loan of Rs. 200.30 Crores from Yes Bank between 2011 to 2016 in the name of M/s MSMPL and out of it Rs. 64 Crores was directly transferred back to Yes Bank for settlement of the liabilities owed by M/s HDIL Group. Rs. 135 Crores was transferred to the account of M/s HDIL and M/s Privillage Power and Infrastructure Pvt. Limited coupled with M/s Sapphire Land Development Private Ltd (all M/s HDIL Group Companies) immediately after the aforesaid amount came in the account of M/s MSMPL. The loan taken in the name of M/s MSMPL was not in the knowledge of Directors of the joint venture company M/s ODIHL., rather they could know about it later on because the accounts and audit was also under the control of Shri Rakesh Wadhawan while holding the management of M/s MSMPL. 13. The FIR was accordingly registered against Shri Rakesh Wadhawan and its entities where two appellants/companies are not involved. They had purchased two office units in "Kaledonia". The allegation against them is for giving lesser payment towards the purchase of the property. The respondents have failed to show the allegation to this effect in the FIR or even in....