TaxTMI 
TaxTMI 
2026 (6) TMI 117
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....t the deeds of M/s Akshaya Gold Farms & Villas India Ltd. (hereinafter referred to as "M/s AGFVIL"). M/s AGFVIL is a public limited company incorporated under the Companies Act. However, its Directors with criminal intention, started collecting money with a false promise of repayment on high rate of interest or with the assurance that the company would register a piece of land in the name of the depositor for equivalent amount. M/s AGFVIL also raised money under the multilevel marketing scheme, which is prohibited under Section 4, 5 & 6 of the Price Chits & Money Circulation Schemes (Banning) Act, 1978. It was to the tune of Rs. 857 Crore (approximately) and failed to repay the amount to the extent of Rs. 330 Crore (approximately) and thereby cheated the general public. 3. The FIR was registered not only against M/s AGFVIL but its group companies apart from their Directors. The police/CBI filed charge-sheets against the accused after completion of investigations. Finding a predicate offence, the respondent recorded ECIR and caused investigation against the accused and others. Having found a case of money-laundering and acquisition of proceeds of crime, provisional attachment was....
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....s and accordingly Rs. 9 lakhs was received from Krishna Kumari on 04.06.2014. The relevant details of other sources were also given. However, when the appellant was asked to substantiate the source for purchase of property, reference to chart was given. In light of the source disclosed by the appellant, it was submitted that there was no reason for the Adjudicating Authority to confirm the provisional attachment. 8. In the light of the sources disclosed by the appellants, the prayer was made to cause interference in the impugned order. 9. Ld. Counsel for the appellant did not raise any other argument despite an opportunity to raise any other factual or legal issues, he, rather, closed his arguments. Arguments of the Ld. Counsel for the respondent: 10. Ld. Counsel for the respondent vehemently contested the appeals on all the factual grounds raised by the appellants. It was submitted that appellants are recipient of the proceeds of crime and accordingly they failed to disclose the source for its acquisition. The provisional attachment of the property was caused finding it to be out of proceed of crime or for value equivalent to it. 11. Ld. Counsel for the respondent d....
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....out payment of consideration to avoid legal consequences. Shri Bhogi Subramanyam also reiterated the same facts vide para 10 of his reply dt 04.06.2022 addressed to Adjudicating Authority. It was admitted that the properties belong to M/s AGFVIL were purchased out of funds of the company. In the statement of appellant's son Shri Vadlamudi Balakrishna recorded u/s. 50(3) of the Act of 2002 on 08.06.2022 stated that Shri Gunda Narsimha Reddy and Shri OuthuSubha Reddy transferred their properties to the appellant. He stated that his mother i.e., Smt. Vadlamudi Naga Siromani (appellant) had paid consideration amount in cash for those properties, however his mother i.e., Smt. Vadlamudi Naga Siromani (appellant) didn't have any documentary evidence of the payment to the seller. He also stated that it was told by Shri Varanasi Srinivas, Shri Beeravalli Srinivasa, Shri Gunda Narasimha Rao/Reddy and Shri OuthuSubba Reddy to repay to the depositors that the properties might have been attached by the AP Police as many FIRs were registered against the company and the directors as the company failed to repay the due amount to the investors/depositors and therefore, they requested him to pur....
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....ocumentary evidence for the payment of consideration to the seller. In fact, the appellant did not purchase the property but was purchased by M/s AGFVIL. The statement of Shri Bhogi Subramanyam dated 06.05.2022 substantiates the fact raised by Ld. Counsel for the respondent which has been referred in the paras above. The defence is taken by the appellant on the statement of his son Shri Vadlamudi Balakrishna that Shri Gunda Narsimha Reddy and Shri OuthuSubba Reddy transferred their properties to the appellant. However, the source for purchase of the properties could not be proved by them and thereby the property originally purchased by the accused's company M/s AGFVIL was transferred to the appellant to save it from provisional attachment and if at all the theory propounded by the appellant is to be considered, she was required to prove the payment of consideration to the company for purchase of property for which, she utterly failed. Thus, the appellant failed to make out any case to cause interference in the impugned order. In the case of Shri Vadlamudi Balakrishna 19. The main argument raised by Ld. Counsel for the appellant is that the appellant was not involved in commis....
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....onsideration amount of Rs 52,42,000/- in cash but he failed to furnish any document related to payment of consideration to the seller and its sources. 23. As against the argument raised by the Ld. Counsel for the respondent, the appellant had furnished an application to detail out the source for purchase of property. The application disclosed the source but Ld. Counsel for the appellant failed to refer any document to substantiate the facts narrated therein. Further, the appellant failed to submit any loan document for an amount of Rs. 33 Lakh said to have been received from Vijaya Poultry and so on. In fact, all the facts and figures in the application to disclose the source remain for the namesake and without any proof. It is more so when the respondent have established the foundational facts for receipt of the proceeds of crime by the appellant. It is not only referring to the statement of the appellant himself but statement of Shri Bhogi Subramanyam. 24. The cash book and ledger book were submitted along with the application without its filing along with the appeal. The additional evidence cannot be accepted at the belated stage unless it is filed along with an applicatio....