TaxTMI 
TaxTMI 
2026 (5) TMI 586
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.... the properties of the appellant, amounting to Rs. 58,54,106/-, as mentioned in Para 1 of the impugned order. 2. As per the facts of the case, Anti-Corruption Bureau, Vishakhapatnam, Andhra Pradesh on credible information against Shri Metta Appanna, then working as Executive Engineer, VUDA, Vishakhapatnam, has acquired assets disproportionate to his known sources of income, and accordingly, FIR No. 14/RCA-VSE/2010 dated 27.09.2010 was registered against him for commission of offence u/s. 13(1)(e) read with 13(2) of the Prevention of Corruption Act, 1988. During investigation, searches were conducted at the residential premises of said accused and his relatives on 28.09.2010. After completion of investigation, ACB, Vishakhapatnam filed charge-sheet before Special Judge for ACB cases. As per the investigation conducted by ACB, the total assets disproportionate to the known sources of income were calculated as Rs. 84,88,697/-, after considering the total income and expenditure. On the basis of said charge-sheet, the Directorate of Enforcement, recorded ECIR No. 04/HYZO/2017 dated 23.03.2017 and initiated investigation under PMLA. During course of investigation, Enforcement Direc....
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....ve observed that the Appellants cannot be tried for the offences under the PML Act, when the offences were not inserted in the schedule of offences under the PML Act. He argued that even otherwise, appellant Metta Appanna obtained prior permission from his department for purchase of immovable properties, which are wrongly attached by ED. He also regularly filed Annual Property Returns to his Department, but this material fact was ignored. There is nothing on record that the said properties are acquired from any illicit income. He stressed that the impugned properties were purchased by taking housing loans, withdrawal from provident fund, sale of old properties etc. Ld. Counsel for the appellants pointed out that other appellants are not arrayed as accused in the charge-sheet case. He pointed out that execution & registration of WILL dated 14.07.2009 by Shri Killi Raghuramudu (Defendant No.3) in favour of his daughter Smt. Metta Soudhamani does not amount to transfer of title in properties. The WILL can be revoked by Testator at any time before his death. His daughter, the contingent beneficiary will not get any right thereunder during his life and hence these properties are wrongly....
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....mission 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 offences would not be relevant in the context of the prosecution under the PML Act. What would be relevant in the context of prosecution is the time of commission of the act of money laundering. The question would be, whether a person involved in money laundering as provided under Section 3 of the PML Act has indulged in the said act or not has to be decided by the competent authority. What is the date of laundering of money will have to be decided on facts of each case and there cannot be any prescribed straight jacket formula. This is an important fact which the authority will have to examine and it is a mixed question of law and fact. 78. A person acquiring assets through illegal means who comes before the society and claims that said money was acquired by proper means, then he would be guilty of the offence of money laundering. A person might have committed an offence long back and the proceeds of it is being placed, layered or so....
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....rived or obtained as a result of that crime. 43. Needless to mention that such process or activity can be indulged in only after the property is derived or obtained as a result of criminal activity (a scheduled offence). It would be an offence of money-laundering to indulge in or to assist or being party to the process or activity connected with the proceeds of crime; and such process or activity in a given fact situation may be a continuing offence, irrespective of the date and time of commission of the scheduled offence. In other words, the criminal activity may have been committed before the same had been notified as scheduled offence for the purpose of the 2002 Act, but if a person has indulged in or continues to indulge directly or indirectly in dealing with proceeds of crime, derived or obtained from such criminal activity even after it has been notified as scheduled offence, may be liable to be prosecuted for offence of money-laundering under the 2002 Act -- for continuing to possess or conceal the proceeds of crime (fully or in part) or retaining possession thereof or uses it in trenches until fully exhausted. The offence of money-laundering is not dependent on or ....
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....A1, dated 14.10.2010 and 2) Lr. AB/PFM - Metta Appanna-EE/APHMHIDC/EE-2010-11/637 dated 22.10.2010 issued to the Visakhapatnam Urban Development authority/VUDA and AP Health and Medical Housing & Infrastructure Development/ APHMHIDC respectively were addressed to Inspector of Police, ACB, Seethamadhara, Visakhapatnam, wherein they have informed inter alia that the Appellant, Shri Metta Appanna had not obtained any permission or given intimation for the acquisition or disposal of any movable, immovable properties by way of purchase/transfer/gift in his name or in the name of his family members. This failure of the Appellant amounts to violation of Rule 9 (1) of the APCS. (Conduct) Rules, 1964, which states that- No Government employee shall, except after previous intimation to Government, acquire or dispose of or permit any member of his family to acquire or dispose of, any immovable property by exchange, purchase, sale, gift or otherwise either by himself or through others. Ld. Counsel for the respondent ED contended that it is the duty of an employee to bring it to the notice of the department and to seek prior approval irrespective of the sources/loans. On the other hand, Ld. ....
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....ure by the police does not amount to double attachment. The Prevention of Corruption Act is silent on the aspect and procedure of attachment. Previously, the investigation agencies used to apply for attachment and confiscation of the proceeds of crime under Criminal Law Amendment Ordinance, 1944, after the conviction of the accused under Prevention of Corruption Act, 1988. But after the coming into force of the Prevention of Money Laundering Act, 2002, and the inclusion of the offences under Prevention of Corruption Act, 1988 in the list of predicate offence annexed with the Schedule, the ED is empowered to attach and preserve the property during investigation of the case i.e. even before waiting for the conviction of the accused. Hence, the intent of seizure under PC Act, 1988 is not similar to that of attachment under PMLA, 2002. As per Cr.P.C. after the search, police may seize the incriminating or material evidence found during the search by way of Panchnama. The concerned person has right to apply to the concerned court for release of the said seized material on Supardaginama with an undertaking to preserve the same till the conclusion of trial. However, the attachment under P....
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....om the cited lands were mentioned to be much lower than the claims of Appellants. Thus, it is evident that Appellants, Shri Metta Appanna and Smt. Metta Soudhamani Devi had no enough sources of income to acquire the assets to the tune of Rs 84,88,697. Hence, the claim of Shri Metta Appanna and Smt. Metta Soudhamani Devi that the said immovable properties are acquired with their legal sources of income is totally misleading and completely false. Therefore, this issue is decided against the appellants. 10. Coming to issue no. v), contention of the Appellants is that as the WILL deed executed by Shri Killi Raghu Ramudu will come into force only after his life time the same shall not be considered as a ground. However, we agree with the contention of the respondent that the fact is that the said WILL deed is executed by Shri Killi Raghu Ramudu, in favour of his daughter i.e., wife of Appellant No.1, Smt. Metta Saudhamani Devi. Shri Killi Raghu Ramudu's sons also accorded the WILL deed by appending their signatures as witnesses. During the investigation under PMLA, both the sons of Appellant Sri Killi Venkata Ramana and Shri Killi Bhaskara Rao stated that their father did not hav....