2026 (4) TMI 697

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.... to the order dated 24.09.2024 passed by the Adjudicating Authority to allow retention of the seized bank accounts of the appellant. Brief facts of the case: 2. It is a case where an FIR was registered on 08.12.2021 with Shivaji Nagar Police Station, Pune against Shri Suyog Mehta, Sh. Abhijar Ghodnadiwala, Shri Dhananjay and others for their involvement in showing temptations of high returns and for that deputing many persons. After registration of the FIR, police caused investigation and filed charge-sheet on 07.03.2022. In the investigation, it was found that accused made a plan and hatched a scheme for temptation that if an amount is invested through the accused company in Forex Trading through OctaFx trading platform, there would ....

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....ubmitted that the bank accounts freezed by the respondent have no nexus or connection with the commission of crime. The appellant company has not received any amount out of the proceeds of crime and therefore even a case of layering or concealment of proceeds of crime was not made out. The respondent caused freezing of the bank accounts based on the assumption, otherwise, it could not show a money trail to make out a case of money laundering. The appellant received Foreign Direct Investment (FDI) on sale of its security after due approval from the Reserve Bank of India (RBI). However, the receipt of FDI as per the provisions of law it has been treated to be receipt of the proceeds of crime only for the reason that the investment was caused ....

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....FDI towards transfer of security. The appellant company had no connection whatsoever with Ms. Anna Rudaia or its entities and therefore prayer was made to cause interference in the impugned order. It is more so when even the appellant has disclosed the utilization of funds received as FDI. Arguments of the Ld. Counsel for the respondent: 8. Ld. Counsel for the respondent contested the appeal. Ld. Counsel for the respondent submitted that freezing of the bank accounts has been rightly done by the respondent which is nothing but proceeds of crime routed in the bank accounts of the appellant company. It is submitted that Ms. Anna Rudaia was the Chief Operating Officer and looking after the day-to-day operations of M/s APAC Stock Bro....

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....investors and was remitted outside India in guise of fake import business and was routed back to India as FDI. Therefore, the bank accounts were rightly freezed during the course of investigation and has been rightly retained by the Adjudicating Authority. The prayer was made not to interfere in the impugned order. Findings of the Tribunal: 10. I have considered the rival submission and perused the records. In the opening paras, I have made the reference of the FIR registered against Shri Suyog Mehta, Sh. Abhijar Ghodnadiwala, Shri Dhananjay and apart from others for securing illicit money by giving false temptations of high returns to the investors who were cheated by the Company, OctaFx India Private Limited. So far as the appellant....

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....d, Ms. Anna Rudaia and therefore the amount transferred to the bank accounts of the appellant was rightly freezed. The perusal of the record does not demonstrate that two companies invested in the security of the appellant company were recipient of the proceeds. In absence of a proof, the freezing of the bank account remains illegal. 11. It is necessary to add that if serious allegations have been levelled against the accused, it is to be defended by him in view of the reverse burden under Section 24 of the Prevention of Money Laundering Act, 2002. The appellant company disclosed the financial status of the companies invested the money which are said to be guided by Ms. Anna Rudaia as per the statement of Ld. Counsel for the respondent b....

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....f the matter while attaching the bank accounts of the appellant company. If the companies situated outside India were having link with the accused, then they were recipient of the proceeds of crime after layering it through other companies and how the respondent have ignored receipt of the equity by those companies for provisionally attachment could not be explained. Thus, above action of the respondent remains to the benefit of the person alleged to be recipient of the proceeds of crime outside India and otherwise the appellant company could not have been blamed for receipt of the amount. It was transferred by taking the process to receive FDI and was through the banking channel for transfer of security with the approval of the RBI. Thus, ....