TaxTMI 
TaxTMI 
2026 (7) TMI 165
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....3 with Central Bureau of Investigation (CBI), New Delhi with a request to register a case and investigate the alleged unethical dealings of M/s Finmeccanica, Italy in the matter of procurement of 12 VVIP/VIP Helicopters by the Ministry of Defence, Government of India from M/s Agusta Westland International Limited, UK. 3. Based on the said complaint, on 12.03.2013, the CBI registered a case vide RC No. RC-217 2013 A 0003 against Air Chief Marshal SP Tyagi (Retd.) and others, and one Mr. Christian Michel James (hereafter referred to as Christian Michel) for alleged commission of offences punishable under Section 120-B read with section 420 of the Indian Penal Code, 1860 (IPC) and Section 7, 8, 9, 12, 13(2) read with sec. 13(1)(d) of the Prevention of Corruption Act, 1988 (P.C. Act) in connection with the payment of kickbacks in the contract for purchase of the aforementioned 12 VVIP/VIP Helicopters from M/s Agusta Westland International Limited. A chargesheet was subsequently filed by the CBI which is pending trial before the Special Court, Patiala House Courts, New Delhi. 4. The alleged offences being scheduled offences under the PMLA, and Enforcement Case Information Report (....
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.... process enabling M/s Agusta Westland International Limited to get the contract for supply of 12 VVIP/VIP helicopters for an amount of Euro 556262 million from the Indian Air Force, Government of India, on 08.02.2010. 9. The, Agusta Westland deal triggered a media debate in India, UK and Italy. It came to light that an amount of Euro 42.27 million was received by Christian Michel James and his companies, M/s Global Services FZE and M/s Global Trade & Commerce under the guise of five agreements with M/s Agusta Westland Group, UK for services that were never rendered. 10. Insofar as the present appeals are concerned, the facts leading to the attachment of properties which has been challenged in these appeals have been summarized briefly in para 5.12.2 (page 20 of 86) of the impugned order, which is reproduced below: "5.12.2 From the ongoing investigation conducted under PMLA, it has been revealed that payments were made by M/s Global Services FZE to various entities. PWC was appointed Auditor to audit accounts of M/s Global Services FZE. The PWC report raised objections to accounts of M/s Global Services FZE. To cover up the objections Internal Auditor Casana Giorgia w....
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....nce case which relates to alleged bribes and kickbacks paid to Indian Government Officials by one Christian Michel James, for the variation of requirements for procurement of 12 VVIP Helicopters in order to favour M/s Augusta Westland in the bid. The kickbacks were allegedly transferred through M/s Global Services FZE. The classification of these funds as proceeds of crime, is based on a belief that the sum of Euro 8,84,764/- was transferred by M/s Global Services FZE, to M/s Fairbridge Estates FZE. It is stated that as per the timeline of events alleged, the RFP was allegedly revised with criminal intent on 27.09.2006 and the contract itself was awarded on 08.02.2010 (Pr. 2.6 PAO). It is the case of the Respondent that M/s Fairbridge Estates FZE received the sum of Euro 8,84,764/- from the M/s Global Services FZE between the period October 2009 until March 2012. It is contended that the allegation is not consistent with the timeline in which the RFP was modified. 13. It is next contended that the only basis for the Respondent to have the belief that money came to be credited for the benefit of M/s Fairbridge Estates FZE is the audit extract prepared by Casana Giorgio in consult....
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.... that alleged period of transfer, i.e. October 2009 until March 2012, as they are not maintained by Standard Chartered Bank, and have to be destroyed in Dubai in accordance with local laws relating to banking. It is also submitted that even as on the date of very first summons issued by the Respondent Directorate to the Respondent No. 2 herein, M/s Fairbridge Estates FZE was already wound up. 17. It is pointed out that Sh. Siddharth Sareen, even while giving his statement on 26.06.2019 to the Respondent, made it abundantly clear that he was unable to get details of the Bank Statement of M/s Fairbridge Estates FZE, and on questioning was willing to give a letter of authorization in favour of the Respondent to retrieve these bank statements, in spite of which no bank statements were ever procured by the Respondent. 18. It is also pointed out that this Appellate Tribunal, vide several orders from 15.01.2025, 17.03.2025, 06.05.2025, 01.07.2025, 24.07.2025, 19.08.2025, 30.10.2025, and 24.11.2025 directed the Appellant herein to file an application to summon the Managing Director of Standard Chartered Bank Mumbai, to obtain the bank statements of M/s Fairbridge Estates FZE, but bas....
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....lf was involved or received the proceeds of crime 23. Thus, in conclusion the arguments raised by the Appellants, the present appeal deserves to be allowed and the PAO, and the Confirmation Order deserve to be set aside Submissions of the Respondent 24. The Respondent Directorate has opposed the submissions made on behalf of the appellants. Ld. counsel for the respondent asserted that the facts recorded in paragraphs no. 5.12.2 to 5.20 of the impugned order which have also been referred to the appellants, provided a strong basis for the respondent to proceed against the bank accounts to the extent mentioned above. It was for the appellants to disprove the alleged transactions and to establish the sources of the amount attached in their hands and how the same had been derived which they have completely failed to do in the present case. They also did not file the copies of the bank account statements to disprove the alleged transactions. 25. In light of the above submissions, the respondent has prayed that the appeals be dismissed, being devoid of merit. Analysis, Findings & Order 26. I have given careful consideration to the material on record and the rival submiss....
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....stian Michel certifying its authenticity. In this regard, I find that the report was provided to the directorate by the lawyer of the principal accused, Mr. Christian Michel, and the said document was stated to be a defence document of Mr. Christian Michel. Para 5.12.2 of the impugned order states that in his statements, Christian Michel stated that the audit report may have made certain errors on narrations, but the quantum of money transferred and the amounts are correct. In this connection, it may be mentioned that the contention of Mr. Sidharth Sareen is that he was personally unaware whether transactions between M/s Global Services FZE and M/s Fairbridge Estates FZE ever took place, as he became owner and in-charge of the company only in 2015, upon inheritance (by will) of the estate of his father who had set up the said company. Such being the stated position of Sh. Sidharth Sareen who is the appellant in one of the appeals herein and the beneficial owner of the company which is the appellant in the other appeal, he cannot at the same time, assert that the alleged transactions did not take place as this would be contrary to his own stated position that he was unaware of the a....