TaxTMI 
TaxTMI 
2026 (4) TMI 1439
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....re, Jaipur and Indore. The investigation was conducted followed by charge sheets finding a case for commission of case under Sections 406, 409, 420, 120-B, 201 and 174A IPC. 3. The appellant Roopesh Verma was arrested while two other Directors, namely, Sumit Verma and Arjun Singh absconded and declared proclaimed offenders vide the order dated 21.10.2014. The main allegation against the appellant Roopesh Verma and others was for cheating and fraud with investors after launching of two schemes, namely, "Car on Rent" and "Shree Resorts". The schemes were floated to alure the general public for investments promising handsome return. The money was collected from different parts of the country and accordingly several FIRs were registered against the accused in different parts of the country when they failed to stand on their promise after taking money from the investors. The summary of the charge sheet filed by the EOW Police is reproduced hereunder: "(a) The accused Shri. Roopesh Verma S/o Shri. Kishore Kumar Verma, R/o 1/403 Bhoomi Park 1, Malad west, Mumbai, used to run taxi in Mumbai. Thereafter in the greed of earning more money he started a company M/s Shree Om Sainath....
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....gation, his premises at Delhi was searched by Delhi Police and Rs. 2.24 Crores cash, gold coins, silver coins were seized from his Delhi office premises. During investigation, it has been revealed that the accused used to induce the investors by publishing attractive advertisements in various newspapers and when investors approached them, they used to provide brochures showing rosy pictures of huge returns through various schemes. (e) Delhi Police extracted the investors' data from website of company. As per data for the period from 05.04.2008 to 14.12.2009 available in the website of Shree Om Sainath Car on Rent Ltd, total 33,248 booking IDs were available in the system for that period. The total amount invested against them was Rs. 3,92,04,93,423/-. As per Charge-sheets there were 2618 to 2692 complainants of Delhi-NCR against this company who had invested amounts in lakhs". 4. In the forensic audit, it was found that a total deposit of Rs. 573.3 Crores was received in different cities during the Financial Years 2006-07 to 2009-10. The Provisional Attachment Orders were accordingly caused from time to time and for that first Provisional Attachment Order was caused....
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....r legal or factual issue. The learned counsel for the appellants recorded his satisfaction to the issues raised by him and prayed for an order in reference to his legal and factual issues. Arguments of counsel for the respondents: 8. The appeals were vehemently contested by the learned counsel for the respondents. Elaborate arguments were made on all the issues raised by the appellants. It would be referred while recording our finding on all the issues raised by the appellants to avoid repetition of facts and for the sake of brevity. Finding of the Tribunal: 9. The brief facts pertaining to registration of the FIRs in several parts of the country involving offence under Sections 406, 409, 420, 120-B and 201 IPC, apart from Section 174 IPC have been given in the opening paras. The main accused Roopesh Verma introduced a Scheme to alure the investors to involve their money on a promise of high return. The two Schemes were floated and accordingly investments were made in different parts of the country expecting high returns but the accused failed to stand on their promise and accordingly investors felt cheated and thus FIRs were lodged. The ECIR was thereupon recorded by t....
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....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 or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever". 12. The ECIR and further proceedings were recorded when ingredients to make out a case of money laundering was found and the relevant date would be when a case under Section 3 of the Act of 2002 was found and not the date of commission of predicate offence. The view aforesaid is supported by the judgment of the High Court of Karnataka at Bangaluru in the case of Dyani Antony Paul Vs. Union of India dated 11.12.2020. The relevant paras are quoted hereunder: 77. Article 20 of the Constitution prohibits conviction except for violation of a law in force at the time of commission of an offence. In other words, there cannot be prosecution under the PML Act for laundering of money acquired by committing the schedule offences prior to the introduction of the PML Act. Therefore, the time of commission of scheduled off....
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....vant date is not the date of acquisition of illicit money but the dates on which such money is being processed and projected it as untainted". Apart from the aforesaid, we find element of continuous offence. The allegation of cheating and fraud continued as the promise made by the appellants to the investors was not settled at any point of time prior to the recording of the ECIR or Provisional Attachment Order. The allegation against the appellants is to alure the investors to involve their money on a promise of high return and accordingly investments were made involving more than Rs. 500 Crores. The investors were not extended due benefits as promised and has not been extended till date thus it remains a case of continuous offence. The amendment vide Notification dated 15.02.2013 would not affect the present proceedings thus the first argument raised by the counsel for the appellants cannot be accepted. 13. The next issue raised by the appellants is for attachment of the property purchased on 10.04.2007 and that too by the sister of the main accused Roopesh Verma. The appellant Vaishali Thakur was not involved in the case thus attachment of her Flat has been questioned. It i....