TaxTMI 
TaxTMI 
2026 (9) TMI 1505
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....ter referred to as 'ED') under the Prevention of Money Laundering Act, 2002 (hereinafter referred to as 'PMLA'). 2. The prosecution case, as emerging from the prosecution complaint and the material placed before this Court, is that the Directorate of Enforcement initiated proceedings in relation to the activities of Vuenow Marketing Services Limited, Vuenow Infotech Private Limited, Zebyte Infotech Private Limited, Zebyte Rental Planet Private Limited and other connected entities. The Directorate had initially conducted search and seizure proceedings at various premises connected with the Vuenow Group of Companies under the provisions of the Foreign Exchange Management Act, 1999 read with Section 132 of the Income-tax Act, 1961. During the course of those proceedings, certain bank accounts of the concerned companies were frozen. On perusal of the transactions in the said accounts, it was reflected that the accounts contained an amount of more than Rs.125 crore whereas the foreign remittances forming part of the proceedings were stated to be approximately Rs.75 crore. The Directorate, thereafter, forwarded information under Section 66 of the PMLA to the concerned police authoriti....
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....age assets. As per the prosecution, the petitioner was involved in the affairs of the companies through which the alleged money was received, transferred and utilized & the material collected during the course of investigation has established his connection with the financial transactions which form the subject matter of the prosecution complaint. The ED has further alleged that the statement(s) recorded under Section 50 of the PMLA contain material which reflects the involvement of the petitioner & also the manner in which the public money was allegedly utilized for personal gains. It has been further alleged that petitioner did not adequately cooperate with the investigation despite repeated summons issued under Section 50 of the PMLA. The petitioner is stated to be arrested on 28.02.2025 in the case in hand. 3. Learned counsel for the petitioner; led by Shri. Vikram Chaudhri, senior Advocate; espousing the cause of the petitioner, has iterated that the petitioner has been in custody since 28.02.2025 and has already undergone a substantial period of incarceration. Learned senior counsel has further iterated that the prosecution complaint was filed wayback on 24.04.2025 and ....
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.... on 28.02.2025. It has been further urged that the evidence relied upon by the ED substantially documentary in nature, consisting of bank records, statements already recorded and digital material already seized and, hence, there is no reasonable possibility of the petitioner tampering with the evidence. Furthermore, the petitioner has deep roots in the Society; is not at flight risk and is ready to comply with any condition(s) imposed by this Court while granting the concession of regular bail. 3.4. Learned senior counsel has further urged that the power of arrest under Section 19 of the PMLA is a statutory power circumscribed by mandatory safeguards. According to learned senior counsel, the arresting officer must possess material in his possession that give rise to the requisite "reason to believe"; such reasons must be recorded in writing & the arrested person must be informed of the grounds of arrest. It has been contended that these statutory requirements have not been complied with scrupulously and the grounds of arrest and the purported reasons to believe, when examined in the backdrop, do not disclose the relevant satisfaction as contemplated under Section 19 of PMLA. Fur....
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....d further diversion of proceeds of crime. Sukhwinder Singh Kharour is actively involved in money laundering in connivance with other directors and other persons involved in the companies i.e. M/s VMSL, M/s VIPL, M/s ZIPL, M/s ZRPPL, M/s Kharour Film LLP and others. * Sukhwinder Singh Kharour and his team conducted multiple seminars to give presentation and to motivate the investors/ channel partner to buy more and more cloud particles. Sukhwinder Singh Kharour played important role to explains the said project to the public/ investors and lure the public/ investors for investing amounts in M/s VMSL in the guise of sale of cloud particle on the basis of fake claims. * Sukhwinder Singh Kharour is the major shareholder and director in M/s VMSL & M/s VIPL. Sukhwinder Singh Kharour is one of the beneficial owners of the proceeds generated by these companies. The details of the shareholding and directorship are as below:- S.No. Name of company Role of Sukhwinder Singh Kharour 1. M/s Vuenow marketing Services Limited * Director for the period from 28.06.2019 to 10.09.2023 * Shareholder to the tune of 76% 2. M/s Vuenow Infotech Private Limited ....
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....ailed to state the satisfactory reply. * During the course of investigation, it is found that a substantial amount of money collected from various customers/ investors was diverted by Sukhwinder Singh Kharour for different non-business purposes, purchase of luxurious vehicles, purchase of jewellery, purchase of shares and immovable/ movable properties. * During the course of investigation, it is found that Sukhwinder Singh Kharour was incorporated the entities outside India. One of the entities is M/s Vuenow Digital World PTE Ltd, Singapore wherein Sukhwinder Singh Kharour is having 90% of shareholding. The purpose to incorporate the said entity was to expand the business of Vuenow Group. Also, Sukhwinder Singh Kharour had incorporated a firm in USA. To identify the role of these entities in the instant case, the investigation is under progress. * On perusal of bank accounts of Sukhwinder Singh Kharour & bank accounts of M/s VMSL and M/s VIPL, it is observed that Sukhwinder Singh Kharour had received below mentioned proceeds from the said companies: Name of receiver Name of transferor company Period Amounts received (in Rs.) Sukhwinder Sing....
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....Infotech Pvt. Ltd Axis Bank 920020049809520 1,00,258 4. M/s Vuenow Infotech Pvt. Ltd Axis Bank 922040075066968 57,13,662 5. M/s Vuenow Marketing Services Ltd Axis Bank 921040067784589 24,14,499 6. M/s Vuenow Marketing Services Ltd Axis Bank 9180200113988729 26,02,646.19 7. M/s Vuenow Infotech Pvt. Ltd Axis Bank 922020026821268 7,67,510 8. Sukhwinder Singh Kharour Axis Bank 918010013057562 14266548.31 9. Sukhwinder Singh Kharour Axis Bank 923050057203240 71,59,946 10 Sukhwinder Singh Kharour Axis Bank 920040048999141 9,97,097 11 Sukhwinder Singh Kharour Axis Bank 920040007403036 2,61,135 12 Sukhwinder Singh Kharour Axis Bank 920040051149584 2,48,935 13 Sukhwinder Singh Kharour Bank of India 713710310000072 3,88,700.13 14 Sukhwinder Singh Kharour Digi Bank by DBS 881011249795 4325178.91 15 Sukhwinder Singh Kharour HDFC Bank 13071000164176 1,40,840 16 M/s Vuenow Marketing Services Pvt. Ltd HDFC Bank 59250003456789 33,87,73,312.01 17 M/s Vuenow Infotech Pvt. Ltd HDFC Bank 5....
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.... M/s Vuenow Marketing Services Ltd. RBL Bank 409002030600 2500001 47 M/s Zebyte Rental Planet Pvt. Ltd SBI 42466951793 1,36,701.52 48 M/s Vuenow Marketing Services Ltd. Yes Bank 72563400000393 29,04,080.04 49 M/s Vuenow Infotech Pvt. Ltd Yes Bank 72563400000324 3,02,066 Total 1,44,57,09,017.84 SN Car Vehicle Model Owner Value 1 HR26FA0079 Toyota Land Cruiser 200 series M/s VMSL 1,29,66,380 2 PB10HG0079 FORTUNER SIGMA 4 M/s VIPL 25,05,333 3 PB10FN0079 ENDEAVOUR 2L TIT+4x4 AT SPORT M/s VMSL 24,50,405 4 PB10HV0079 HARLEY DAVIDSON FAT BOY 114 M/s VIPL 16,93,130 5 PB07BG0079 FORTUNER SIGMA 4 (AT) M/S VIPL 27,22,000 6 PB10HW0079 BMW India Pvt LTD. M/s VMSL 17,21,374 7 PB07BD0079 FORTUNER SIGMA 4 (AT) M/s VMSL 27,22,000 8 HP38D0013 RANGE ROVER EVOQUE 2.0D RDYNSE M/s VMSL 48,70,946 9 HP97A0079 MERCEDES-AMG G 63 SUKHWINDER KHAROUR 1,80,00,000 10 PB02EL0079 FORTUNER SIGMA 4(AT) M/s VMSL 27,48,000 11 PB91G0079 LEXUS LX500D SUKH....
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....ith the aforesaid reply, learned senior counsel has iterated that the allegations raised against the petitioner are grave and relate to alleged large-scale economic offence(s) involving substantial amounts and a number of investors. According to learned senior counsel, the material collected during the course of investigation reflects active participation and attributes central role in the affairs of the concerned companies as also in the movement and utilization of the alleged proceeds of crime. Furthermore, the petitioner has failed to satisfy the statutory requirements for grant of bail under Section 45 of the PMLA. Furthermore, the likelihood of the petitioner evading the process of law, if released on bail, cannot be ruled out at this stage. 4.2. Learned senior counsel has vociferously urged that the factum of the petitioner being incarcerated for a period of more than 01 year and 07 months in the ECIR in question vis-à-vis the nature of allegations against him do not, ipso facto, warrant his release on regular bail. 4.3. Thus, dismissal of the petition in hand is canvassed for. 5. I have heard learned counsel for the rival parties and perused the record. 6.....
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.... suggestive of an endeavour to frustrate the investigation or trial. 6.1. The aforesaid considerations acquire a somewhat distinct complexion in cases involving economic offence(s). At the core of our constitutional and legal jurisprudence lies the imperative that the national economy and public wealth must subserve the common good and vision of a welfare state, unhindered by fraudulent depredations. It is this mandate of distributive justice and egalitarian welfare that economic offence(s) violently subvert. Economic Offence(s) corrode the fabric of democracy and are committed with total disregard to the rights and interest of the nation and are committed by breach of trust and faith and are against the national economy and national interest. Far from being isolated infractions of private law, these calculated, sub-terranean depradations; whether executed through sophisticated corporate syndicates, digital subterfuge, or fiduciary deceit, strike directly at the heart of the national exchequer. Operating within a cool, pre-mediated design, they weaponise regulatory lacunae to siphon off public wealth, reducing the constitutional promise of common security to a cruel mockery and ....
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....f the cloudparticle investment model, mobilization of investments and subsequent movement and utilization of the funds. 7.1. The material placed on record by the respondent-ED prima facie indicates a considerable disparity between the quantum of cloudstorage capacity allegedly sold to investors and the actual operational capacity found during the course of search proceedings. The prosecution has further relied upon statement(s) which indicate that the rental payments to earlier investors were being made out of investments received from the subsequent investors. 7.2. The aforesaid material, when taken at its face value for the limited purpose of deciding the present bail application, cannot be brushed aside as it does not merely relate to an ordinary commercial dispute. The allegations pertain to a structured financial arrangement involving multiple corporate entities, numerous investors and substantial financial transactions. Prima facie, the material relied upon by the prosecution, including the statements recorded during investigation, documentary and financial material and the transactions undertaken through entities allegedly connected with the main accused, cannot be dis....