TaxTMI 
TaxTMI 
2026 (3) TMI 1074
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....piece of land in the name of the depositor for an equivalent amount. M/s AGFVIL, raised money under Multi-Level Marketing scheme, which is prohibited under Section 4, 5 & 6 of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978, to the tune of Rs. 857 crores (approximately) and failed to repay to the tune of Rs. 330 crores (approximately) and cheated the general public. Further, as per the Memorandum of Association, basic objectives of M/S AGFVIL are to acquire or establish, construct, purchase, lease, exchange or otherwise any estates, lands, buildings and hereditaments of any nature or description and any estate etc. for the company. Deposit collection/collective investment scheme was not part of the objects of the company. Thereafter, several FIRs were registered against M/s AGFVIL (main/flagship company of Akshaya Gold Group of Companies), other group companies of Akshaya Gold Group and their Directors. Later, Charge Sheets have also been filed by Andhra Pradesh State Police and CBI Bhubaneswar. The gist of the FIRs/ Charge Sheets filed by the State Police of Andhra Pradesh, Karnataka, Telangana and Orissa are explained on pages 98-118 of the OC. 2. It has ....
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....ny etc.), (iii) by diverting funds towards purchase of educational society (viz., M/s Thatavarthi Educational Society) (iv) by incorporating companies in the names of family (viz., M/s Akshaya Nava Nirman Pvt. Ltd., etc.) (v) by purchasing properties in personal names/benami names/family names (vi) company paid advances towards purchase of properties, registered in the names of benamis/family members names (viz., properties registered in the name of Shri Vajrala Sudhakar etc.). The Company has floated a fraudulent scheme by inviting depositors from public for the said scheme deceitfully with a terminal ulterior motive to siphon of the funds collected from public. 5. The complainant, having described the nature of offence and their relation to the movable/ immovable properties attached, issued Provisional Attachment Order No. 01/2022, dated 08.03.2022 under sub section (1) of section 5 for provisional attachment in the form of movable/ immovable properties totally valued at Rs. 65,19,84,196.75/- (Rupees Sixty-Five Crores Nineteen Lakhs Eighty-Four Thousand One Hundred Ninety-Six and Paise Seventy-Five Only) having MARKET VALUE of Rs. 2,68,22,25,539.75 (Rupees Two Hundred Si....
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....elow to the fair market value as on the date of provisional attachment. The value of the property is far excess to alleged proceeds of crime in the hands of the Appellant. Thus, if at all the properties provisionally attached is to be taken for value equivalent to the proceeds, its attachment should be restricted to the proceeds of crime vis-à-vis the value of the property and accordingly an appropriate order be passed. The Counsel for the Appellant did not raise any other argument than referred to above despite an opportunity given by this Tribunal to raise any other factual or legal issue. The Counsel for the Appellant recorded his satisfaction to the issues raised by him for challenge to the impugned order and prayed for acceptance of the appeal in reference to those grounds and accordingly, he closed his argument. The appeal was contested by the Counsel for the Respondent. Elaborate arguments were made on all the issues raised by the Appellant. Those arguments would be referred while recording finding on each issue raised by the Appellant to avoid repetition of the same facts and for the sake of brevity. Finding of the Tribunal: - In the opening paras of this....
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....ife of Bhogi Subramaniam, the Managing Director of M/s AFGVIL, who was involved in commission of crime and was the main accused. The Appellant was having shares in the company apart from bank accounts out of which an amount of Rs.17.80 lakhs was found in her account as on 07.06.2011. She transferred a sum of Rs. 17.50 lakhs for purchase of the property on 08.06.2011 to Shri Chitta Gopal. On deep examination of the bank accounts, it was found that there were multiple cash deposits, which could not be explained by the Appellant rather stated to have received from her husband. It was found that cash deposits remained to the tune of Rs. 35.80 lakhs during the period of 11.01.2011 to 07.06.2011. The Appellant could not disclose the source. It was even if the cash was provided by the husband, then source of the husband was required to be disclosed. It was further found that directors of the M/s AGFVIL used to withdraw money from the company in the name of commission by using self- coded or in the name of family members. The investors' money was thus diverted and siphoned off by the accused and transferred to many which include the Appellant. The statement of Smt. Bhogi Santhi was reco....