TaxTMI 
TaxTMI 
2026 (5) TMI 202
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....2002 (PMLA), is filed by the appellants against the order dated 13.03.2018 passed by the Adjudicating Authority, in Original Complaint no. 832/2017, whereby the Provisional Attachment Order (PAO) dated 25.09.2017 was confirmed, and thereby the attachment of the properties of the appellants as detailed in para 1 in tables 1-3 at internal page 3 to 9 of the impugned order, totally valued at Rs. 5,11,98,978.01 were confirmed. 2. During CBI investigation, 7 numbers of Keys, purportedly of Bank Lockers were found, out of which 6 were found to be of Bank Lockers and one could not be identified. All 6 Bank Lockers were operated jointly in which jewellery, precious metals, stones and diamonds were found to be kept in 3 no. of Lockers which were frozen u/s. 102 Cr.P.C. Total value of items kept in these three Lockers were assessed as Rs. 2,88,12,681/- (approx) by the empanelled Valuer of IDBI Bank. Rest 3 lockers were found to be empty, therefore, keys pertaining to those lockers were returned back to Ujjal Kumar Das. During investigation by CBI, Ujjal Kumar Das could not explain satisfactorily about the source of jewellery found in the Lockers. S/Sh. Ujjal Das and his father Santosh ....
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....rom the A/c No. 136651100000277 of IDBI Bank, G. S. Road, Guwahati-781 005 (IFSC; IBKL0000136). M/s. Ventex Vinimay Pvt. Ltd. under signature of Sh. Ujjal Kumar Das, from IDBI Bank, Guwahati, from the Account No. 136651100000277. Summons were issued to 15 entities at both the addresses of companies/firms' offices as well as the proprietors' residential addresses, as mentioned in the KYC documents, but all are returned undelivered by the postal authorities, with remarks likes insufficient address, transferred, not known, moved etc. Thus, it appears that all the firms/companies (purported suppliers) in whose names Cheques were drawn by M/s. VVPL, were all fake and fictitious as no such companies/firms and their so called proprietors could be found during the investigation. During investigation under PMLA, the Bank Accounts, (page No. 41), have been maintained/operated by Shri Ujjal Kumar Das and his family members and money lying in the said Bank Accounts which are believed to represent the value the said proceeds of crime. Hence, the Banks have been requested to prohibit the withdrawal facilities from the said accounts and the same are also provisionally attached un....
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....firmed that their statements are correct. Further, in his statement dated 27.06.2017, he submitted the copies of Sale Deeds bearing Nos. 1612/2009 and 1611/2009 in respect of purchase of two rice mills at Mouza Isufabad, J.L. No. 17, P.S. & Dist. Burdwan which he purchased on consideration of Rs. 95,00,000/- and Rs. 1,15,00,000/-; that the said amounts were paid to the earlier owners by 11 and 14 bank drafts of Bank of Baroda, Maniktala, Kolkata Branch respectively; that the entire amount was paid by him. That to the specific query he stated that after releasing the Bank Loan to his company Ventex Vinimay Pvt. Ltd. at several stages i.e. Rs. 250 lakhs on 07.05.2009 and Rs. 750 lakhs on 11.06.2009, his company M/s. Ventex Vinimay Pvt. Ltd. issued several cheques favouring Disa Enterprise, Vinayak Trading Co, Tirupati Enterprises, Dhanganga Enterprise, Pushpak Impex Trade, Makabara Tea Co., Guwahati, Chikupara Tea Company, Kolkata, Jupiter Tea Co., Kolkata, Full Chand Gangwall & Sons, Kolkata, Dev Tea Co., Kolkata, etc.; that as per his instructions, after crediting the amount to the said companies/ firms, they transferred the money to his several companies/ firms Accounts such....
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....Order dated 25.09.2017 under Section 5(1) of PMLA. Thereafter, Original Complaint No. 832/2017 was filed before the AA along with relied documents for confirmation of PAO. The AA being satisfied with the allegations therein, issued the SCN to the defendants for filing reply. Being not satisfied with the reply and after hearing the rival submissions, the AA confirmed the PAO for attachment of the properties. Aggrieved by the said order, the appellants filed the present appeals. 3. During the arguments, Ld. Counsel for appellants submitted that loan was sanctioned on 28.04.2009, whereas the scheduled offence under IPC were notified as Scheduled Offence vide amendment w.e.f. 01.06.2009 and accordingly, he stressed that the said amendment cannot be applied with retrospective effect as on the date of sanction, Section 420 IPC was not a Scheduled Offence. Ld. Counsel for appellants further argued that all the properties were acquired by the appellants much before the sanction of loan and alleged commission of fraud and most of the properties were even purchased prior to coming into force of PMLA w.e.f. 17.01.2003. Accordingly, he stressed that the attached properties, need to be re....
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.... recorded showing offence under Section 3 of the 2002 Act. The relevant date to find out the scheduled offence and the offence of money laundering is when it is projected to be untainted property to make out an offence under section 3 of the Act of 2002. We further fortify our view in this regard, in lieu of the judgment of Hon'ble Supreme Court of India in the case of Vijay Madanlal Chaudhary v. Union of India, 2022 SCC OnLine SC 929, wherein it is held that- "42. From the bare language of Section 3 of the 2002 Act, it is amply clear that the offence of money-laundering is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived or obtained as a result of criminal activity relating to or in relation to a scheduled offence. The process or activity can be in any form -- be it one of concealment, possession, acquisition, use of proceeds of crime as much as projecting it as untainted property or claiming it to be so. Thus, involvement in anyone of such process or activity connected with the proceeds of crime would constitute offence of money-laundering. This offence otherwise has nothing to do with the criminal activ....
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....xt otherwise requires, -xx xx xx xx xx xx xx xx (u) "proceeds of crime" means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property' [or where such property is taken or held outside the country, then the property equivalent in value held within the country] [or abroad]; [Explanation.- For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence]. xx xx xx xx xx xx xx xx xx The perusal of the definition reveals three limbs of the definition out of which first part refers to the property acquired or derived directly or indirectly by a person relating to the criminal activity to a scheduled offence. The second part includes "the value of any such property". The second part is generally mixed with third part for giving interpretation. However, an elaborate judgment on the issue has been given by the Delhi Hig....
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..... It was also urged before us that the attachment of property must be equivalent in value of the proceeds of crime only if the proceeds of crime are situated outside India. This argument, in our opinion, is tenuous. For, the definition of "proceeds of crime" is wide enough to not only refer to the property derived or obtained as a result of criminal activity relating to a scheduled offence, but also of the value of any such property. If the property is taken or held outside the country, even in such a case, the property equivalent in value held within the country or abroad can be proceeded with. The definition of "property" as in Section 2(1)(v) is equally wide enough to encompass the value of the property of proceeds of crime. Such interpretation would further the legislative intent in recovery of the proceeds of crime and vesting it in the Central Government for effective prevention of money-laundering." The paras quoted above show a detailed discussion to the interpretation to the definition of "proceeds of crime". The judgment of the Apex Court in the case of Smt. Pavana Dibbur v. The Directorate of Enforcement reported in 2023 SCC OnLine SC 1586 has also been considered. Ho....