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TaxTMI 
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TaxTMI 
2026 (5) TMI 15
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....was received from IRF of which Rs. 6.20 Crores was utilized towards the construction of the school building. 2. Ld. Counsel for the Appellant stated that the Complainant vide Provisional Attachment Order No. 04/2017 dated 20.03.2017 in ECIR/03/MBZO/2016 attached various movable and immovable properties totally valued at Rs. 17.45 crores held by IRF and M/s. Harmony Media Private Limited. One of the properties attached by the Complainant vide the afore-said Provisional Attachment Order is a School Building in the name of IRF Education Trust, Chennai valued at a total sum of Rs. 11.05 Crores out of which it is claimed that a sum of Rs. 6.60 Crores was received from IRF of which Rs. 6.20 Crores was utilized towards the construction of the school building. Since the Provisional Attachment Order included attachment of the School Building over the land of the Appellant, he approached the Hon'ble High Court of Judicature at Madras by way of a writ petition seeking a writ of certiorari for calling for records of the Provisional Attachment Order and to quash the same as regards the School Building owned by the Appellant. In view of the Order of the Hon'ble High Court of Madras, the C....
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....tled "Islamic International School" on the said property and there were 80 students studying at the relevant time. The lessee defaulted in paying rent from September 2016. As a result of the said default, a notice dated 26.12.2016 was issued by the Appellant to the Trust and a copy was marked to the Principal of the School stating that unless the arrears are paid within 15 days, appropriate proceedings will be instituted. Ld. Counsel further submitted that despite the above- mentioned notice, there was neither any response nor any payment of rent. Ld. Counsel informed that the Appellant issued the notice dated 23.03.2017 and thereafter terminated the lease as per the clauses above referred to and took possession of the property in its entirety including the buildings thereon as he was entitled in terms of the lease deed above referred. 5. Ld. Counsel for the Appellant contended that the IRF Education Trust is itself not shown to be coming within the mischief of Unlawful Activities (Prevention) Act, 1967. The Complainant had issued the Provisional Attachment Order seeking to attach various properties of M/s IRF. While doing so, the Complainant has attached the School Building thr....
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....e school building. Out of the said amount, an amount of Rs. 6,20,00,000/- was utilized by IRF Education Trust towards the construction of the school building and the balance amount was utilized towards running IIS Mumbai and IIS Chennai. Ld. Counsel contended that the Bank Statements of Bank Account No. 001- 20200000949 and Bank Account No. 001-20200000976, both of DCB Bank clearly indicate that the donations were made by IRF-to- IRF Education Trust. Apart from the donations received from IRF, IRF Education Trust received direct donations for the construction of the School Building at Chennai. As also there were internal transfers from the various Bank Accounts of the IRF Education Trust which were utilized for the construction of the school building at Chennai. Ld. Counsel contended that even assuming that IRF money had been used in the construction/improvement of the existing building which was originally leased out for education purpose, still the authorities will have no jurisdiction since by reason of termination of the lease deed the property became vested in the Appellant. There is no offence of money laundering committed as the acts of the Appellant do not constitute offenc....
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....s from public platform and arousing anti-communal feelings and disaffection towards the country. He was instrumental in inciting the fringe elements in the society. The donations from these unknown sources were apparently in response to these hate speeches made by Dr. Zakir Naik. Thus, prima facie the funds received in IRF were proceeds of crime emanating from the scheduled offence. 10. Ld. Counsel for the Respondent contended that out of the funds received by IRF, an amount aggregating to the tune of Rs. 6.60crores (approx) had been diverted towards IRF EducationTrust. The said trust was registered in the year 1993 with the Charity Commissioner, Mumbai and is presently running two schools viz. one in Mumbai and the other in Chennai in the name of Islamic International School. The trustees were Dr. Zakir Naik, his wife Mrs. Farhat Naik and Smt. Nailah Naushad Noorani (sister of Dr. Zakir Naik). The IRF Education Trust was receiving funds by way of donations, capitation fees as well as donations from IRF. These funds were utilized for construction of building premises. A school in the name of Islamic International School, Chennai has been running from a Building structure on a la....