TaxTMI 
TaxTMI 
2026 (9) TMI 11
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....USTICE MUNISHWAR NATH BHANDARI (CHAIRMAN) For the Appellant(s) : Mr. R.K. Rawal, Auth. Representative, Ms. Kritika Mehta, Advocates For the Respondent(s) : Ms. Nidhi Raman Mr. Nikunj Bindal, Advocates ORDER By a batch of appeals, a challenge has been made to the order dated 18.11.2024 passed by the Adjudicating Authority confirming the Provisional Attachment Order ("PAO") dated 10.06.2024. Brief facts: 2. It is a case where an FIR was registered by the Central Bureau of Investigation, EO-I, New Delhi on 16.07.2021 for the offence under Sections 120-B, 406, 420 of the Indian Penal Code, 1860 and Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 against M/s Shree Raj Mahal Jewellers Pvt. Ltd. ('SRMJPL'), its directors Praveen Gupta (alias Goel), Pradeep Goel, Ginni Devi, Ashok Goel, guarantor Jai Singh Goel and the guarantor companies M/s PLB Infrastructure Pvt. Ltd., M/s Bhavya Gold Pvt. Ltd. And M/s Shree Ganpati Gold Projects Pvt. Ltd. along with unknown public servants and private persons. The crime period is said to be between year 2010 to 2015. 3. The allegation against the accused was in reference to the loan extended to M/s SRMJP....
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.... on Ground Floor (without terrace/ roof), part of portion of Shop No. 2 & 3, 2608 to 2613 & 2637, Ward No. XVI, Plot/ Khasra No. 252 & 253, Block-M Gurudwara Road, Naiwala Estate, Beadon Pura, Karol Bagh, New Delhi-110005 No. --- Already sold before PAO 3. Sparsh Gems Pvt. Ltd. Ground & First Floor of the property no. 12/20. W.E.A. Karol Bagh, New Delhi-110005 No. --- Already sold before PAO 4. Radha Jewellery House 2190, Block-J, Khasra No. 540, Ward No. XVI, Naiwala Estate, Beadonpura, Karol Bagh, New Delhi-110005 No. Partly sold before PAO Pvt. No. 104, Part of First Floor, Municipal No. 2633 & 2634, Ward No. XVI, Plot No. 249 & 250, Block-M, Nailawa Estate, Bank Street, Karol Bagh, New Delhi - 110005 No. --- Partly Sold before PAO 5. Zelos Jewels Pvt. Ltd. Built up portion of Ground Floor measuring 105.872 sq. mtrs. & built up portion of first floor measuring 79.228 sq. mtrs. (Combindly measuring 185.1 sq. mts) without terrace roof rights, out of freehold property bearing no. 12/5, W.E.A. Karol Bagh with proportionate rights in the undividable land underneath, New Delhi - 110005 (EXCEPT....
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....e business of the appellant company and proof thereof which can be in the form of invoice, GST return or Income Tax Return etc.. The representative was fair enough to admit that no such evidence has been produced. He, accordingly, prayed to save the interest of the purchaser(s) or the mortgagor(s). 8. I have considered the submissions raised by the Counsel for the parties in reference to the limited argument raised by the appellants. It is a case where serious allegation exists against SRMJPL for commission of offence of cheating, forgery and other offences with the consortium of banks in which the individuals, named in the initial para of this order, were active and said to be the persons behind creation for the appellants' company also. They created entities for the purpose of laundering of the funds acquired from the bank as a loan. It was to purchase the properties. The endeavours of the main accused and the appellant company remained successful. It is, however, with the fact that many of the properties were quickly sold while in few cases it was partially sold before the provisional attachment and remaining were mortgaged. 9. So far as the properties sold prior to provis....
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.... commission of the alleged predicate offence which has been specified as 2010-2015. Whether the above-mentioned property can be considered as "Proceeds of Crime". It is submitted that once a scheduled offense has been committed and the corresponding proceeds of crime have been generated by the accused individuals, the value of these proceeds is subject to attachment or confiscation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. If the proceeds of crime generated by the accused have been dissipated or are otherwise unavailable, any movable or immovable property equivalent to the proceeds of crime that has been acquired, concealed, or enjoyed by the individuals involved is also subject to attachment. It is pertinent to mention that investigation has revealed that diversion of loan funds of M/s SRMJPL started immediately after receipt of said loans. The diverted funds were subjected to multiple layering and used for personal gains of the promoters, directors of M/s SRMJPL. M/s PLB infrastructure Pvt Ltd has also been benefitted by the PoC. The defendant has not provided the sources of funding of the property in question by the defendant company along w....
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....d.. Once this property has no relation at all with the loans provided by the Banks to M/s SRMJPL hence this property by no stretch of imagination considered as Proceeds of Crime. 1. The investigation has revealed generation of proceeds of crime and acquisition of the same by accused persons in collusion with others. Investigation has revealed that the proceeds of crime have been subjected to multiple level of layering by using shell entities run in the name of dummy directors/partners. Thus, in view of the above, the complainant has sought attachment of certain properties under the impugned PAO in terms of value thereof. 2. On 24.01.2023 M/s Mingle Realtors Pvt. Ltd. sold this entire property to Mr. Samar Kumar Aggarwal and Mr. Piyush Rajgaria vide registered sale deed. Copy of the sale g deed is annexed herewith and marked as ANNEXURE R-1. 2. It is submitted that the defendant has claimed having sold out the attached property on 24.01.2023 and annexed a purported sale deed as Annexure-R-1. However, it is seen from the deed that it is not a registered sale deed. It does not contain any registration details with the Sub-Registrar office. The genuineness of the sam....
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....parsh Gems Pvt. Ltd. by way of a registered sale deed and the sale deed pertaining to the 50% undivided share of Ground Floor and First Floor were cancelled at the directions of the Hon'ble High Court of Delhi. 1. It is submitted that the defendant had not submitted any documentary evidence to substantiate its claim. However, the facts have come on record. The contentions of the defendant are admitted to the extent that the registration of first floor and ground floor of the property in question in the name of defendant was disputed by the owner company and Hon'ble High Court has ordered cancellation of earlier deeds. Later on 2/3rd part of first floor was sold out to the defendant company. Further investigation in the matter in on. 2. M/s Sparsh Gems Pvt. Ltd has sold of this several area of this 2/3 has been sold to several persons by virtue of various sale deeds much prior to the passing of the Provisional Attachment order. 2. It is submitted that averments of the defendant having sold out the 2/3rd part of property no. 12/20 WEA Karol Bagh, owned by it, it denied and disputed in absence of copy of registered sale deeds in support of said claim. Investigat....
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....ubmitted that this property was purchased by Radha Jewellery house by way of E-Auction on as is where is basis. The total Area of the above mentioned property was 1650 sq. ft. Out of which 419.38 sq. ft. and 396.69 sq. ft. had already been sold before purchasing the said property. 2. It is submitted that the defendant firm has claimed that it has already sold out the substantial parts of the attached properties. The claim of purported sales is not supported by any documents. The defendant has not submitted copy of any sale deeds in support of its claims. As such the claims made by the defendants are denied and disputed in absence of any documentary evidences. The attached properties have been purchased in the name of the defendant which is evident from the copy of the sale certificates and deeds relied in the OC. Investigation has revealed that the proceeds of crime have been subjected to multiple level of layering by using shell entities run dummy in the name of directors/partners. The defendant firm is one such entity run by the promoters/directors of M/s SRMJPL for layering/laundering of PoC. The complainant has sought attachment of certain properties under the A impugned PAO....
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....ets by using the proceeds of crime. The defendant is also one such company controlled by the promoters, directors of M/s SRMJPL. Sh. Aman Gupta S/o Late Anil Gupta, R/o C-80, Ground Floor, Inderpuri, New Delhi during his statement dated 07.05.2024 recorded u/s. 17 of PMLA, 2002 during the course of search operation at his residential premises as well as during his statement dated 14.05.2024 recorded u/s. 50 of PMLA, 2002, has revealed that he had dues of Rs. 20-25 lakhs payable by Sh. Pradeep Goel in lieu of the same he was offered to become a director in the company M/s Zelos Jewels Pvt Ltd owned and controlled by Sh. Pradeep Goel. The said company owned immovable property ie Built up portion of 105.872 sq. meter at Ground Floor and 79.228 sq. meter at First Floor of Plot No. 5 (12/5), Block no. 12, W.E.A. Karol Bagh, New Delhi. This proves the fact that the defendant company is controlled by Sh. Pradeep Geol, suspect director of M/s SRMJPL. The property in question has been attached as value of property in terms of Section 2(1)(u) of PMLA, 2002. 2. Out of 9 shops situated at the abovementioned property 4 shops bearing No. 101,103,104 and 203 were sold for a considera....
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....1.6% shareholding of M/s Cosmos Tradexim Pvt. Ltd. held in the name of M/s Krishna Gold Pvt. Ltd. is lying mortgaged with Aerion Finserve Pvt. Ltd. and whether the shareholding which is already been mortgaged to a Financial Institution on 19.12.2023 can be attached by the Enforcement Directorate. 1. It is submitted that the claims of the defendant are without any supporting documents. Investigation conducted so far, did not reveal mortgage of the property in question with M/s Aerion Finserve Pvt. Ltd. The claims of the defendant are denied and disputed. The same are not acceptable in absence of any documentary evidences. 2. The expression "reason to believe" does not mean purely subjective satisfaction on the part of the officer concerned. It postulates that the belief must be held in good faith and it cannot be merely a pretence. It is open to Adjudicating Authority to examine whether the reasons for belief have a rational connection or an element bearing the information for the belief and are not extraneous or irrelevant to the provision of the section. Further, the said reason to believe must be recorded on the material deduced concerned officer. before the conce....
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....nal Attachment Order for fulfill of mandate of PMLA. Also in this regard, proper justification had been given in the Reasons to believe mentioned in the body of the PAO as well as OC. Hence, the averment of the Appellant is unfounded and is denied. Cosmos Tradexim Pvt. Ltd. 1. The attached shareholding is already been mortgaged to a Financial Institution on 19.12.2023. 1. It is submitted that the claims of the defendant are without any supporting documents. Investigation conducted so far, did not reveal mortgage of the property in question with M/s Aerion Finserve Pvt. Ltd. The claims of the defendant are denied and disputed. The same are not acceptable in absence of any documentary evidences. 2. The expression "reason to believe" does not mean purely subjective satisfaction on the part of the officer concerned. It postulates that the belief must be held in good faith and it cannot be merely a pretence. It is open to Adjudicating Authority to examine whether the reasons for belief have a rational connection or an element bearing the information for the belief and are not extraneous or irrelevant to the provision of the section. Further, the said reason to beli....