2025 (10) TMI 1380
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....rrest (Annexure-G) made on 23.08.2025 arising out of ECIR/BGZO/19/2025 registered by the Respondent herein from Gangtok, Sikkim as being without jurisdiction, illegal, arbitrary, violative of the Accused No.1's fundamental rights guaranteed under Article 19 and 21 of the Constitution of India. c) Consequently, direct the release of the Accused No.1, arrested pursuant to the issuance of the Grounds of Arrest (Annexure-G) made on 23.08.2025 arising out of ECIR/BGZO/19/2025 carried out by the Respondent in connection with E.C.I.R/BGZO/19/2025 registered by the Respondent herein in the interest of justice." 3. The grounds of arrest to arrest Mr. K.C. Veerendra (husband of the petitioner) under Section 19 of the PMLA, 2002 reads as under: "Ground of Arrest to arrest Mr. K C Veerendra under section 19 of PMLA, 2002 (ECIR/BGZO/19/2025) 1. You, Mr. K C Veerendra, the main accused in FIR No. 0064/2011 dated 24.10.2022 registered at Challekere Police Station under Sections 420 of IPC 1860, 66 of Information Technology Act, 2000, 79 and 80 of Karnataka Police Act, 1963, and FIR No. 215/2022 dated 24.10.2022 registered at Davenagere Extension Police Station un....
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....n 06.03.2015, the accused persons who were in the house rented by K.C. Thippeswamy, behind Vishwanath's complex in Nanniwala village on Bhanashankari Road, Sangolli Rayanna Circle, Challakere Town, contacted the public online and took money from the public as a stake for cricket betting and gambling and cheated the public by playing lucky gambling of winning and losing. On the information of the Honourable Chitradurga District Police Superintendent, the police raided the cricket betting and gambling racket and arrested the nine accused persons. When the accused were questioned, it was found that the accused were conducting cricket betting and gambling on behalf of K.C. Virendra @ Pappy, son of Late Channabasappa, Resident of Challakere Town near Veerabhadraswamy Temple, and take money from the public on his behalf. 2.3.FIR No.435/2016 dated 29.10.2016 registered at Challakere Police Station, Chitradurga District Acts invoked: IPC 1860 u/s [420], Karnataka Police Act, 1963 u/s 78(3) Accused: ● Rajesha c s ● Sidrameshwara aliyas Sidrama FIR Contents: As per the FIR No. 435/2016 dated 29.10.2016 registered at Challakere Poli....
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.... using his username and password and by logging to the said application. In this way, the complainant had lost around Rs.3 Lakh rupees in cricket betting by giving the said amount to the accused. Chargesheet Contents: As per the chargesheet filed in FIR No. 215/2022 dated 24.10.2022 registered at Davanagere Extention Police Station, Davanagere District, the complainant Venkatesh H was told by the first accused Kiran Kumar to handover money related to cricket betting to the brother of first accused, Kishore (A-5). When the fifth accused Kishore came to collect Rs.80 thousand from the complainant, the police raided him and seized 07 lakhs in cash and 01 bike used for betting and arrested him. A pocket note book related to betting was seized from the first accused. 3. That based on the abovementioned FIR, the Directorate ECIR bearing of Enforcement recorded an No. ECIR/BGZO/19/2025 preliminary after inquiry/investigations. 4. During the course of investigation, it has been gathered from various sources that you are a habitual offender involved in multiple frauds involving various illegal betting applications and casinos. 5. Summary of Fraud....
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....t in Majestic Pride Casino where he stated that he is operating one online betting app King567 and requested me to provide the services of payment gateway to the said app and he accepted the proposal. The commission for all module transactions was fixed at 2%. He also stated that the turnover of the said companies was around Rs. 500 crores between April 2021 to October 2022. 6.2. He stated that Mr K C Veerendra operates casinos in Goa. He used to share the KYC like name and contact number of the persons, who visited his casinos in Goa with the team of king567 who used to approach those customers and explain about the online betting app. Thereafter, they started betting through king567 application and the payments were processed through my payment gateway company. King567 application was controlled by both Mr K C Veerendra alias Pappy and Mr Appu and they are the beneficial owners of this application. 6.3. He further stated that the Vehicle No. KA45N003 was funded by me through M/s Simtech IT Solutions Pvt Ltd. This was facilitated at the request of Mr. K C Veerendra. Neha Tandon also confirmed during course of her statement recorded during search that she draws sa....
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....Merino Casino) and has many other firms like Rathna Gaming, Rathna Solutions, Puppy's Tours & Travels etc. Apart from this, Mr. KC Veerendra is also running his online gaming business and back office of casinos (in India and Sri Lanka) in Dubai, UAE, however, Mr. Prithvi Nagaraju (+971527589567) is the suitable person to provide the exact details he the only person who can provide the exact details of his Dubai business. 6.7. He further stated that initially Mr. KC Veerendra used to pay through bank account, however, somewhere in 2022- 23, when his Kavitha Tours and Travels, Karnataka Bank account was freezed by the bank, then, K C Veerendra started to pay me in cash mode. On being asked, I state that the associates of Mr. KC Veerendra namely Manjunath (Mob - 9845122799) and Siddharth (Mob - 9980453313) used to deposit the cash from Challakere, Chitradurga, Karnataka in Kavitha Tours & Travels bank account. Manjunath is the relative of KC Veerendra and Mr. Siddhartha is the assistant of Mr. KC Veerendra. He stated that his firms' Karnataka Bank account was freezed due to payments received from KC Veerendra's Dubai based entities in the garb of ticket payments. ....
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....er Internet. The betting amounts are collected through various payment gateways. Shri KC Veerendra entered into this online betting app field in the year 2021- 22. 6.12 Shri Gulshan Kattar, who is the owner of Fonepaisa payment gateway introduced Ezugi based platforms to Shri K C Veerendra and his brother, Shri Tippeswamy. Online betting apps King567, Raja567 etc. were hosted by Ezugi, the payment gateways to these betting apps were provided by Shri Gulshan Kattar. Reports of the same platforms are received through Email from the Ezugi to whichever Email ID provided by Shri KC Veerendra & Shri Thippeswamy. Reports of the same platforms are received through Email from the Ezugi to whichever Email ID provided by Shri KC Veerendra & Shri Thippeswamy. He stated that Gulshan Kattar used to interact with the Ezugi for providing the platform to betting apps King567 & Raja567. 6.13 On being shown the printouts of the Emails generated from the Email ID pertain to King567, Rajas67 online betting, he stated that as far as he knows these online betting is controlled by Shri KC Veerendra in association with other family members. Statistics details contains Net Gaming Revene (N....
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....arned from the said casino is shared between K C Veerendra, Thippeswamy, and Anil Gowda among others. That in respect of legal services provided by Krsnaa Legal in India, Anil Gowda receives the remuneration in cash. In respect of the legal services provided by his firm abroad, he receives the amount in his Bank account held at Meshreq Neo Biz Bank. Further, he also said that the brother K C Thippeswamy of the accused is operating 3 business entities from Dubai viz. Diamond Softech, TRS Technologies, Prime9 Technologies and that these entities are related to the call centre services and gaming business of K C Veerendra. 6.17 When asked about ASVSA Enterprises LLP, he stated that he was a partner till 2022 where after he relinquished all his shares to Mr Suraj in 2022. Presently, it is owned by Mr Tippeswamy, Veerendra, Suraj and Prithvi. Consultancy fee of approx. Euro 25,000 was paid for exploring gaming business opportunities across the world. 6.18 He stated that on his advise, during the year 2021, KC Veerendra opened KC Boston Technologies, Roversoftech and Sky High Software Solutions Limited in Cyprus and Curacao. He further said that the beneficial owners of....
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....it. When asked specifically about his casino operations abroad, he denied running any such casinos in foreign countries. 6.23 It is therefore inferred that even though K C Veerendra with the help of his associates, is actively involved in operations of online betting websites by luring public, especially those who visit his casinos, and laundering the proceeds so generated by way of gold purchase, real estate, casinos, outward remittances, purchase of assets abroad, and even concealed in the form of cash. As he has out rightly denied any such accusation and shown wilful non-cooperation in investigation, it is essential to take him into custody to determine quantum of proceeds generated and to trace the same. 7 The evidences/documents collected so far indicate that you are still in possession of Proceed of Crime generated through your illegal activities in various cases as mentioned above. You have laundered the POC generated in form of gold, cash and cryptocurrencies. This demonstrates your active involvement in the comprehensive money laundering scheme, encompassing the processes of layering, placement and integration of proceeds of crime. 8 It is also p....
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....ted to indulge, knowingly assist, is knowingly a party and is actually involved in process or activity connected with the proceeds of crime and projecting it as untainted property and is guilty of an offence of money laundering. 14 You have generated POC by operating illegall cricket betting and online gaming sites. Further you have laundered the PoC so generated through the entities of your associates like Ramani, Khattar, Anil Gowda, Sandeep Mehta. Further you have purchased various movable and immovable properties from the POC. You have also laundered PoC through your casinos. Therefore, you are guilty of offense of Money Laundering. 15 That it is most respectfully submitted that, the custodial interrogation, which is qualitatively more elicitation-oriented, of yours is absolutely necessary in this case as there are many aspects which need to be investigated and you have been totally non cooperative, evasive and misleading during the investigation conducted till now. Interrogation is required to unearth the trail of funds, for corroboration and confrontation with other persons involved in the case. 16 Therefore, I have reasons to believe that you are g....
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....bhadraswamy Layout, Challakere Town, Veerendra along with the other accused Nagaraja was watching the live broadcast of the World Cup Cricket match between England and Ireland on TV and were talking to bettors and customers through mobile phones. The accused persons were alleged to have been deceiving people by betting money on cricket and engaging in illegal gambling. Chargesheet Contents: As per the chargesheet filed in the FIR No.0064/2011 dated 02.03.2011 registered at Challakere Police Station, Chitradurga District, in the residence of Veerendra, the first accused Veerendra and the second accused Nagaraja were watching the live broadcast of the World Cup Cricket match between England and Ireland on TV and were talking to the bettors and customers through mobile phones and were illegally gambling with people by betting on cricket betting money. In this, the third and fourth accused were also involved in cricket betting and gambling. 2.2. FIR No. 60/2015 dated 06.03.2015 registered at Challakere Police Station, Chitradurga District Acts invoked: Information Technology Act 2000 u/s [66], IPC 1860 u/s [420], Karnataka Police Act, 1963 u/s 79,80,78(3) ....
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....d 29.10.2016 registered at Challakere Police Station, Chitradurga District, on 29.10.2016 at 07:15 P.M., in public place on the roadside in front of Mr. Mallikarjuna Medical Shop near the 5th cross of the road at Gandhinagar, Challakere Town, the accused A-1 and A-2, were playing illegal cricket betting and gambling by betting money from the public for and against the cricket playing countries during the last one-day international match between India and New Zealand. When the police went to catch the accused, the first accused was caught and the second accused had fled from the spot. The money and items used by the accused for cricket betting and gambling were seized. 2.4. FIR No. 215/2022 dated 24.10.2022 registered at Davanagere Extention Police Station, Davanagere District. Acts invoked: IPC 1860 u/s [506,420,34], Karnataka Police Act, 1963 u/s 78 (A)(vi)) Accused: ● Kiran R/o Taralabalu Layout, Davangere, ● Chetan Mamata, owner of the hotel, ● Surajkutty, ● Veerendra, @ Pappy, Challakere Town, and others FIR Contents: As per the FIR No. 215/2022 dated 24.10.2022 registered a....
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.... further persuade them to try their luck at Goa Casinos owned by K C Veerendra and Suraj from Davangere. 4.4. The said Suraj is co-partner with K C Veerendra in Asvsa Enterprises LLP along with his brother K C Thippeswamy, his nephew Pruthvi N Raj and Anil Gowda. The said company is found to have remitted funds abroad in name of professional services. 4.5. As per the information on public domain, it is noticed that there is a website by name and style https://puppysworld.com/ which hosts multiple casino businesses in Goa/Sri Lanka/Nepal by names - Casino Gold, Ocean 7, Casino pride, Casino Rivers and Big Daddy being in Goa, Casino Marina (in Sri Lanka), Casino Pride Nepal, and Casino Jewel (Georgia). The website of Casino Marina Sri Lanka revealed Marina888.comsports betting website of which K C Veerendra is handling operations as per his media posts. 4.6. Further social media posts of K C Veerendra were analysed and the same revealed that multiple comments on his posts accused him of running fraudulent online games, especially website in the name of King 567. Several accusations about youth committing suicide, being forced to leave their towns, against v....
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....unt to FONEPAISA merchant for online gaming at INDIA24bet.com and KING567.com. He mentioned that he won few games and money was shown in his account in virtual, but when he requested for withdrawal, they have blocked him and didn't process his withdrawal requests. Further he realised that it is fraud and that he lost amount to FONEPAISA gateway, INDIA24bet.com and KING567.com sites. 4.12. As per the FIR 218/2022 dated 06.07.2022 registered by Harohalli PS, Bengaluru South, the complainant got lured by the provocative advertisements about the Bettin Exchange company and accordingly registered on the app. While playing the game on the Bettin Exchange gaming application, it asked for payment. Accordingly, the complainant transferred Rs. 30,000/- through UPI banking. It was alleged in the FIR that the money sent to Bettin Exchange gaming application was transferred through Fonepaisa company, which was using the said application to make illegal payments from the general public and was running online casinos. Further, the complainant mentioned that when he tried to withdraw his money from the said gaming app, the money was credited to the complainant's account through Fe....
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....o investigation with respect to the above mentioned FIR, revealed that he was providing payout services to the said illegal gaming websites King567 etc. through his companies Raiman Associates, Instape Tech etc. at the instance of one Mr. Abhijith Nagarajappa Sajjan., Ganesha Nageshappa, one Appu, is the son of the actual owner and that all these three belong to Chitradurga, Karnataka. That the contact numbers of the aforesaid persons - Abhijith Nagarajappa Sajjan, Ganesha Nageshappa, Raju and Pappu, available with him are +447746925530 (along with Indian number 9886669511), +971543732499, +971563412567 and +971527589567 respectively. 5. Addendum to ECIR Accordingly, based on above mentioned facts, competent authority approved the addendum to ECIR to include FIR No. 1592/2024 dated 19.03.2024 registered by Cyber Crimes PS, Cyberabad, Telangana, and FIR 218/2022 dated 06.07.2022 registered by Harohalli PS, Bengaluru South, 6. Outcome of search proceedings: - 6.1. During the course of search proceedings, Shri Gulshan Khattar stated that King567 was the online betting app controlled by Mr. Pruthvi N Raj @ Appu, who is the close relative of Mr K C Veerendra (....
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....asinos and online gaming gambling/betting who runs the said business all over the world including India. 6.5. He stated that K C Veerendra and his family members were controlling JOYPAY and they asked us to carry on the disbursement of the funds so that funds so disbursed may be layered and source of funds and its end is not ascertained. We agreed to provide payment disbursement services, since such services only require a Nodal Account or a Technical Service Provider (TSP) account and they agreed to pay hefty commission for that. Furthermore, that Abhijith Nagarajappa Sajjan, Mr. Ganesh, and pappy are all originally from Chitradurga, Karnataka. Statement of Mr Ramani also establishes that Mr K C Veerendra and his family members had generated PoC and layered and laundered the same through the entities controlled by Mr Ramani. 6.6. During the course of search proceedings, Shri Sandeep Mehta stated that he was introduced to K C Veerendra through one Suraj P and that he used to book tickets for K C Veerendra, along with his associate Mr Arjun N., Mr. Harshwardhan, Mr. Ajit Mitta. _ K.C. Veerendra has casino businesses in Goa (under the name Casino Pride, Puppy's ....
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....Veerendra stated that an email [email protected] was also retrieved from his phone which was related to a consultancy fee paid to explore the possibility of getting a global gaming license paid by the Ratna Group of Shri K C Veerendra in 2021. He stated that he took a proposal with quotation on behalf of Shri KC Veerendra for development of casino website to obtain the license from International Gaming Authorities. M/s Mirax Management Ltd Bilize is a Europe Based technology development company and the quotation given by M/s Mirax Management Ltd Bilize was not considered and the said proposal was dropped by the client. 6.11. On being shown multiple conversations with a particular email id [email protected], he stated that Ezugi is the gaming technology provider based in Europe. This entity provides live game APIs over internet to the users across the world including India. Online Betting Apps King567, Raja567 are developed by Ezugi and hosted in the Internet by Ezugi. King567/Raja567 and such apps controlled by Shri KC Veerendra target customers predominantly in India, Sri Lanka and various other parts of the world. King567, Rajas67 host Indian oriented games....
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....ther of K C Veerendra. He manages the online betting business from Dubai, UAE. He resides in a villa at Shobha Heartland, Dubai and also has other properties in Dubai. Online betting business in India is promoted through the employees of casinos owned by Shri K C Veerendra. For the support activities., call centre, customer services are undertaken from the business entities located in Dubai. These entities are normally incorporated in the name of employees of these business entities in Dubai. Names of these entities are Diamond Softtech, Prime9 technologies, Mindscope call centre services etc., Overseeing of the online betting finance department is undertaken by Amulya Suresha who is also the niece of Shri KC Veerendra. 6.16. Several statements and evidences unearthed during the search also revealed proceeds of crime being laundered through various routes and also being sent outside the country. During the course of search proceedings, Anil Gowda stated that K C Veerendra has two casinos abroad in Sri Lanka and Nepal. Anil Gowda stated that the casino in Sri Lanka is rebranded as Puppy's Marina and operated by Shri K C Veerendra since January, 2024. The said casino is ....
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....Veerendra with the help of his associates both within and outside India. 6.21. Further, during the course of search proceedings, an amount of above Rs. 10 crores in cash and Gold Jewellery worth Rs. 5.5 crores, Silver around 10 kgs, along with four vehicles was seized under PMLA, 2002. Further, 17 bank accounts and 2 lockers were freezed. Further, several property documents were also seized from the premise of K C Nagaraj and Pruthvi N Raj. From the above discussion and information, I have reason to believe that Mr K C Veerendra is involved in money laundering activities as defined u/s 3 of PMLA and as substantial amount of PoC has been generated and laundered which is yet to be traced. As detailed above, hundreds of crores of PoC has been laundered and therefore to trace the remaining PoC, custodial interrogation of Mr K C Veerendra is needed. 6.22. During the course of search being carried out at the hotel premise of K C Veerendra while he was on a business visit to Sikkim along with Arjun, he stated that there is no registered entity in his name in Dubai or abroad. But there is a call centre in the name my of elder brother K.C. Thippeswamy, but he does not know....
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....n filed by the investigating agency stating that the matter appears to be a civil dispute to a tune of Rs.30,000/- only. It is also submitted that, the investigation done in the said case does not implicate the husband of the petitioner in any manner whatsoever and that there are no incriminating materials against him which is found by the prosecution. Under the circumstances, it is submitted that the authorities have no ground to register a case under the provisions of the PMLA, 2002 against the husband of the petitioner and arrest him. 8. Per contra, the respondent submits that all the aforementioned FIRs have been registered pursuant to allegation of cheating made against various persons and in some cases against the husband of the petitioner himself. It is submitted that preliminary enquiry revealed that the husband of the petitioner is involved in fraudulent activities of illegal online betting and gambling websites. It is submitted that, online betting and gambling websites have been registered in foreign countries and in India and run by different persons having connections with the husband of the petitioner and he is the main person controlling the same. The algorithms o....
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.... Explanation .- For the removal of doubts, it is hereby clarified that,- (i) a person shall be guilty of offence of money- laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely :- (a) concealment; or (b) possession; or (c) acquisition; or (d) use; or (e) projecting as untainted property; or (f) claiming as untainted property, in any manner whatsoever; (ii) the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession of acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever." 12. Section 2(1)(u) of the PMLA, 2002 defines "proceeds of crime", which reads as follows: "(u) "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of crimi....
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.... to believe, that is, he must form an independent opinion based on the material in his possession that the person has been guilty of the offence of money laundering (Section 3 of the PMLA, 2002). Further, the said reasons must be recorded in writing before the arrest and the grounds of arrest must be communicated to the person arrested. 15. 'Reason to believe' means a belief that a reasonable person, acting on the material available, would entertain a belief that the person is guilty of the offence alleged and it cannot be a mere arbitrary opinion. 16. Thus, in the instant case, for the husband of the petitioner to be arrested, there should have been material with the respondent which shows that the husband of the petitioner has directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in any process or activity connected with the money derived from a scheduled offence (proceeds of crime), including its concealment, possession, acquisition, or use and projecting or claiming it as untainted property in any manner whatsoever. 17. In the instant case, the FIRs mentioned in the grounds of arrest, the reasons to be....
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....AR HEGDE NAGAR, BANGALORE-560077 Operations: C-30, 2nd floor, Jangpura-B, New Delhi- 110014 Director 1: RAM PAHWA. Address: 7], 12th cross, Jayamahal Extension, Benson Town, Bengaluru-560046 Mobile: 8939674188 PAN: BAEPP0661B EMAIL:[email protected], [email protected] Director 2:KARAN SINGH RAWAT, [email protected] CEO 3: RITESH KUMAR S/o Hari Om Shankar Agarwal, Mobile: 9731255422 PAN NO: ACAPA1513E [email protected], [email protected] During the IPL time and after IPL, I come across a lot of advertisements from a gaming company called "BETIN EXCHANGE", "BETIN EXCHANGE" that promoted their company through various marketing channels like social media networks, newsprint, and television advertisements. I was curious about this new platform assuming that is a sports platform also similar to "DREAM 11", so, I registered my user profile at "BETIN EXCHANGE" website online and deposited Rs.30,000 on their website. This amount deposited to check how the platform works, the process involved in accepting the payment and what are they Fantasy games they offer o....
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....tling withdrawal amount and must be doing the same for collecting deposits on behalf of "BETIN EXCHANGE". After deposits and withdrawal verification and validating, I played a few games available at "BETIN EXCHANGE" and eventually lost the money I deposited. I have all the proofs regarding the above situation including transaction details. The main accused and culprit is "fonePaisa Payment Solutions Private Limited", this is the company knows who is "FabFashionz" and "LightSpeedWebSo" and how this company involved promoting "BETIN EXCHANGE". That "fonePaisa Payment Solutions Private Limited" made a conspiracy to use 3rd party companies for their online business transactions to hide the financial data, and impersonate with other names at the face of it for their personal benefit. That "fonePaisa Payment Solutions Private Limited" is doing such high-risk transactions and used to do this kind of wrongful practices. They might be involved in moving out the funds through their Payout product using their company NODAL bank account to various other accounts on behalf of merchant; showing it as Vendor payments, consultant payments cancelled orders and so....
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....and request for strict action as per the law. I also request the respected officer to seek banking/financial data of "FonePaisa Payment Solutions Private Limited with all respect for the inquiry purpose Thank you and request for your immediate action. SATHISH.S Attachments with our compliant: ●"fonePaisa Payment Solutions Private Limited" evidence documents (online payment gateway page, payment processing and confirmation) ●"fonePaisa Payment Solutions Private Limited' company legal documents - company registration certificate ●"fonePaisa Payment Solutions Private Limited" company director details. ●"fone Paisa Payment Solutions Private Limited" company other documents" 20. The case of the petitioner is that no allegations are made against the husband of the petitioner in the aforementioned complaint and the FIR is not registered against him. It is further contended that he is not involved with any of the Companies or persons named in the aforementioned complaint. It is also submitted that no incriminating material has been found against him pursuant to the said case. It is furthe....
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.... AND WHEREAS the Political Declaration adopted by the Special Session of the United Nations General Assembly held on 8th to 10th June, 1998 calls upon the Member States to adopt national money-laundering legislation and programme; AND WHEREAS it is considered necessary to implement the aforesaid resolution and the Declaration" 23. It is submitted that in a case like the one on hand, usually complaint is given by very few persons, who are cheated and FIR No.218/2022 is one such instance and the investigation into the same has made the respondent discover a large network of sophisticated criminal activity involving the luring of several persons and cheating them and realising the proceeds of crime which constitutes an offence under the provisions of the PMLA, 2002. 24. It is further submitted that the contention of the petitioner that the grounds of arrest and the reasons to believe for invoking Section 19 of the PMLA, 2002 do not specify valid grounds is erroneous. The attention of the Court is drawn to the reasons recorded in Clauses 4.12 to 6.23 of the 'reasons to believe' for invoking Section 19 of the PMLA, 2002. The same is extracted along with the othe....
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