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TMI Blog2019 (9) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... htly a defendant and a rightful claimant of one of the property. The above-mentioned property was not acquired from the proceed of crime and is not involved in money laundering, therefore, the attachment at the hand of respondent is released by setting aside the impugned order only pertaining to said property - Appeal allowed - decided in favor of appellant. - MP-PMLA-2897/DLI/2016 (Misc.), FPA-PMLA-605/DLI/2014 - - - Dated:- 16-9-2019 - Justice Manmohan Singh (Chairman) And G.C. Mishra (Member) For the appellant : Shri Anurag Jain, Ms. Ayushi Sharma, Advocate For the respondent : Shri Vikas Garg, Advocate JUDGEMENT MP-PMLA-2897/DLI/2016 (Misc.) FPA-PMLA-605/DLI/2014 1. By this order, we propose to decide the above-mentioned appeal filed under Section-26 of Prevention of Money Laundering Act, 2002 against the Order dated 17.06.2014 in OC no. 257/2014. 2. In the present appeal, we are only concerned with one immovable property i.e.House no. M-4/9, DLF Phase-II, Gurgaon. The appellant is claiming that the above-said property is owned by her by virtue of registered gift deed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the criminal conspiracy hatched, committed the illegal act of cheating various Investors by preparing forged documents, viz a Circular purportedly issued by the Security and Exchange Board of India (SEBI). They had also committed other illegal acts viz. Having opened Bank Accounts in the name of a. M/s. B.G. Financial Services (with Sanjay Gupta and his wife Archana Gupta as partners), b. M/s. G2S Management Consultants (with Sanjay Gupta, Gaurav Jain Ganpat Singh as partners), and c. Using the Account of M/s. NMBPL (with Raghu Raj Puri, and DeekshaPuri are Directors) for illegally and fraudulently obtaining huge undue amounts as Commission, through the abovementioned acts of criminal conspiracy, cheating and forgery, (ii) During the year 2009-2010, they had cheated S/Sh. ArunAnand, Ashok Goyal, Yoesh Jindal, Bharat Goyal, AnupamBhasin C.B. Sharma, Ashok Mukharji, K.K. Bajaj, Ms.DheerajKumari, and others by dishonestly inducing them to deliver property/amount belonging to them to the above named accused persons. (iii) They had also forged certain documents purported to be valuable security, namely, letter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) The investigations reveals inter-alia that the above named accused/suspects, viz.(i) Shri Shivraj Puri Relationship Manager, CITI Bank, and his close relations/associates (ii) Shri Raghu Raj Puri (his father), (iii) Smt. DikshaPuri (his mother), (iv) ShriRajinder Chand (his close associate), (v) Shri Sanjay Gupta (AVP/CFO of Hero Corporates a close associate), and (vi) ShriGaurav Jain ( an Executive of Hero Corporates a close associate), entered into a criminal conspiracy amongst themselves others, and in furtherance thereto, they with dishonest intentions, floated a Bogus Scheme of High Assured Returns on investment by forging a Securities and Exchange Board of India (SEBI) Circular, whereas no such Circular was actually issued by the SEBI. The above named accused/suspect persons, in furtherance to the above mentioned criminal conspiracy, also fraudulently made use of the Bank Accounts of Shri Shiv Raj Puri s other relatives viz. ShriPremNath, Smt. Sheila PremNath and ShriPankajPremNath for undertaking their fraudulent financial activities including for laundering of funds, viz. proceeds of crime. ii) On 27.10.2009, a Bank Account viz. Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure in the said fraudulent schemes. Companies such as G2S Management Consultant and BG Financial Services were set up by Shri Sanjay Gupta to receive substantial undue financial gains in the form of kick backs and commissions etc. from Shri Shivraj Puri, as well as to distribute a part of these kick backs, etc. to the CFOs of other companies who had invested in the aforementioned fraudulently operated Schemes. vi) In addition to fake receipts and statements issued on Citi Bank stationery, Shri Shivraj Puri also showed his investors a fake CITI Bank, but was actually illegitimate. The corporate investors were told to deposit their investment funds into one particular custodian account , Citi Bank account No. 5011666247 maintained by ShriPremNath and other aforementioned relatives of Shri Shivraj Puri. The said account was jointly maintained in the names of ShriPremNath, Smt. Sheila Nath and Smt. DeekshaPuri. Shri Shivraj Puri obtained signature of Smt. DeekshaPuri on blank forms of transactions (MCCD) and used these forms to withdraw the money and channel the same into Brokerage Houses (for derivative trades), individuals (to pay for commission/kickbacks) and com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Amount 1,25,00,000/- GF-A Raisina Residency, Sec 59, Gurgaon 5513 Sqft SCB 531105342540 103290 dt.01.06.2010 36,18,320/- Raisina Residency 261486 dt.01.07.2010 55,76,538/- Total Amount 91,94,858/- Commercial site, A-511 Urban Square Golf Course Road, Sec, 62 Gurgaon, 1240 Sqft SCB 531105342540 261482 dt 31.07.2010 16,66,560/- Urban Square Sec-62 Gurgaon 103296 Dt 01.06.2010 9,52,320/- Total Amount 26,18,880/- Commercial site, A-512 Urban Square Golf Course Road, Sec.62 Gurgaon, 1220 Sqf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18,13,533,48/- Total Amount 29,61,340.48/- 7. On the basis of charge-sheet under Section 173(2) of Cr.P.C. 1973 submitted on 28.03.2011, 01.06.2011 and24.12.2011 by Haryana Police, Gurgaon in FIR No. 341/2010 dated 27.12.2010 of PS L DLF Phase-II, Gurgaon, in the Court of the Hon ble CJM, Gurgaon and documents provided by the Haryana Police, Gurgaon against the ex-husband of the appellant and other third party in the ECIR No. ECIR/04/DZ/2011 dated 22.03.2011 registered in Directorate of Enforcement, New Delhi. 8. It is in the case of respondent ED that during the course of instant investigations conducted so far under PMLA, statements of various persons, connected with this case, including the accused/suspect persons have been recorded in Directorate of Enforcement. 9. The relevant evidence, collected, is mentioned as below:- (i) Statement of Shri Shivraj Puri, was recorded u/s 50 of PMLA, 2002 on 16/08/2012, 14.09.2012 wherein he inter-alia stated, that there was an alert in May 2008, identified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h was recorded u/s 50 of PMLA, 2002 on 16.10.2012 in which he inter-alia stated that Shri Shivraj Puri is related to him, as his mother Smt. DeekshaPuri is the daughter of his (PremNath s) wife s brother; as regards his wife s Account. No. 501166247 with CITI Bank, DLFII, Gurgaon, Shri Shiv Raj Puri suggested to them that in view of their old age they should nominate someone to take care of the affairs of this Account, and in this context, he suggested that his mother SmtDeekshaPuri could be a nominee in the said account, which was accepted by them, since they completely trusted him; at the suggestion of Shri Shivraj Puri, the earlier Account was closed and a fresh Account was opened, in which context Shri Shivraj Puri made them signed some blank Accounts Forms; however, subsequently when the cheque book of the new account was received, he was surprised to see that Smt. DeekshaPuri was named as a Joint Account Holder, instead of being made a nominee, as was agreed to by them; they both, therefore told Shri Shivraj Puri that they did not want SmtDeekshaPuri to be a Joint Account Holder and ask him to immediately close the above Account. 12. The details of the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Raj Prri) SCB531105325425 060661 dt 29.10.2009 93,00,000/- GurmeetKaur 344416 dt 25.09.2009 32,00,000/- Total Amount 1,25,00,000/- GF-A Raisina Residency, Sec 59, Gurgaon 5513 Sqft (Shiv Raj Puri) SCB53110532540 103290 dt 1.06.2010 36,18,320/- RaiosinaReside cy, Gurgaon 261486 dt 1.07.2010 55,76,538/- Total Amount 91,94,858/- Commercial site, A-511 Urban Square Golf Course Road, Sec-62 Gurgaon, 1240 Sqft (Shiv Raj Puri) SCB 53110532540 264182 dt 31.07.2010 16,66,560/- Urban Square Sec- 62 Gurgaon 103296 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Emerald Plaza, Gurgaon SCB 53110532540 808307 dt 10.03.10 2,86,952/- 808333 dt 20.3.10 2,86,952/- 746837 dt 25.1.10 73,903/- 261488 dt 17.10.10 18,13,533.48/- Total Amount 29,61,340.48/- Plot of lant al No. C-2/1056, Palam Vihar, Gurgaon Smt. Archana Gupta, W/o Sanjay Gupta ICICI 035801500543 DD 035220 dt 21.5.10 DD 035221 dt 24.5.10 45 lakh (+ ₹ 2.65 lakh towards registration charges Maruti Zen Car-Reg No. HR-26-BD- 7902 M/s B G Financial Services Axis Bank 910020019164197 DD Dated 24.08.10 3,64,896/- Plot of land at No. C- 1/627, PalamVihar, Gurgaon Smt. Ki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kajPremnath Freesom-58, Whole life 28.07.09 6 lakh 12 lakh 10. 3377264- RaghurajPuri -do- 29.09.2009 15 lakh 30 lakh 11. 3483785- Pankajpremnath Dream Plan- 20 yrs 28.10.09 2,01,500/- 4,03,000/- 12. 3486170- PankajPremnath -do- 28.09.09 2,21,760/- 4,43,520/- 13. 333071663- ShivrajPuri JeevanMitra LIC 25.1.10 2,60,387/- 2,60,387/- 14. 333071662- ShivrajPuri AmulyaJeevan LIC 25.01.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. RaghurajPuri (HDFC) 00441600003335 7,946.66 12. RaghurajPuri (Axis) 131010100380546 72,805.60 13. ShivrajPuri (HFL) RAJSHIV 34,66,407 14. ShivrajPuri (Citibank) 5700178244 21,63,194.47 15. S P Puri (HUF) (HDFC) 987483245 1,543.49 16. ShivrajPuri (HDFC) 00441930004342 1,27,172.10 17. ShivrajPuri (SCB) 53110532540 15,22,702.97 18. DeekshaPouri (Citibank) 5201116246 49,163.88 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a (Axis) 910010013974898 25,57,062.00 (d) Details of Mutual Funds CASA No. DMF No. Customer Name Scheme Name Date of purchase NAV Rate Unit 500311247 3003111252 Premnath ICICI VPEF-PMS 26.10.09 10 25,000 500311247 3003111252 Premnath -do- -do- 10 25,000 500311247 3003111252 Premnath -do- 1.5.10 10 25,000 5005551244 3005551217 Premnath ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3011666255 Premnath UTI-OFDG 30.9.10 15.07 829462.508 5011666247 3011666255 Premnath UTI-OFDG 30.9.10 28.22 442948.264 111154244 3111154219 Metcamholdi ngPvt. Ltd Franinda Dynamic Paralia Fund of Funds Growth 30.6.10 37.8102 66119.724 111154244 3111154219 Metcamholdi ng Pvt Ltd FEF Growth 30.6.10 33.208 57215.129 5011666247 3680510252 PankajPrem nath FEF Div Pay Out 29.4.10 19.967 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Funds DIV 29.9.10 35.5867 1093293.465 5011666247 3680510252 -do- CICI PDPD Pay Out 29.10.10 19.5781 510774.794 5011666247 3680510252 -do- CICI PDPD CHIP 29.10.10 17.22 580720.093 5011666247 3680510252 -do- MiralAssat India Opportunity Fund REG Div REIN 30.11.10 15.712 1018329.939 5011666247 3680510252 -do- -do- 10.12.10 13.978 109248.503 57001784244 3680510252 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CITI Bank, DLF PH-II, Gurgaon opened a Saving Bank Account No. 501166247 in the name of ShriPremnath, ShielaPremanth and DeekshaPuri who were his grandfather, grandmother and mother respectively; that Shri Shiv Raj Puri operated above account by using blank signed transaction forms obtained from ShriPremnath and also by forging signatures of DeekshaPuri in the transaction form; the signatures of DeekshaPuri were also forged by Shri Shiv Raj Puri in the account opening form; that he used to transfer the amount from account No. 50011666247 to Brokerage Houses like Religare, Bonanza, India Infoline etc., that Shri Shiv Raj Puri sourced two types of investors, one from the CITI Bank account holders and other direct investors; that Shri Shiv Raj Puri misused his official capacity as RM and misled the CITI bank customers to invest in the purported investment scheme Vanila Fixed income Interest Deposit (VFIID): the Bank doesn t have any investment scheme by name VFIID , that as per the disclosure made by Shri Shiv Raj Puri during Bank s internal instigation, Shri Sanjay Gupta, CFO; Hero Corporate, used to get investors in the VFIID scheme and Shri Gupta was paid certain percentage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antMunjal, Mayar Infrastructure Ltd, hero Exports (Mr Bharat Goel), Spade Financial, Munjal Investment (Mr Bharat Goel), were the investors, who invested in the scheme of Shiv Raj Puri in Citibank, as they or their relatives were known to Sanjay Gupta, that M/s G2S management Consultants was a partnership firm between Sanjay Gupta, Ganpat Singh and he himself, having 1/3 shares, made at the instance of Sanjay Gupta to undertake the project financing consultancy; that this company had not owned any property and had not been audited; that there was no association between G2S Management and M/s B G Financials except that Sanjay Gupta was a partner in both these companies and funds of ₹ 50 lakh was given by B G Financials to G2S Management for the purchase of property in the name of his wife Kiran Jain; that bank account of this firm has been attached with the Gurgaon Pokice and no activities has been done after this case; that ₹ 4.45 crore was received as commission in the bank account of G2S Management Consultant. 6.7 That, SmtKiran Jain W/oShriGaurav Jain, in her statement recorded on 18.10.2012 inter-alia stated that plot No. C-1/627 PalamVihar was purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck brokers and deployed in the securities market. Here, Citibank and Shivraj managed the funds and securities of the clients and acted as a portfolio manager without being registered as such under SEBI (Portfolio Managers) Regulations, 1993 with SEBI thereby violating the provisions of regulation 3 of SEBI (Portfolio Manager) Regulation, 1993 read with Section 12 (1) of SEBI Act, 1992. 9.3 Further, through such fraudulent activity these entities have engaged in the act of deceiving investors (read Citibank clients) and then channelized the funds in the securities market for personal (speculative) gain. 7.2.2 That, as per para 7.7 of the said report, as reproduced hereunder, Citibank was also held equally responsible for such irregularities:- 7.7 Citibank customers had entrusted their funds to Citibank and it was Citibank that has employed the relationship manager to manage their assets. Here Shivraj, as the relationship manager has acted on behalf of Citibank. Customers, entrusted their funds, not to the relationship manager, but to Citi bank in good faith with the knowledge that the same shall be utilized in the interest of customers. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 4,05,51,41,595/-, the outflow of amount from the Citibank was ₹ 4,01,65,92,050/-. 7.3.2 That from the report, it has been revealed that funds of investors were operated as under:- S.N. Name of entitles A/c No. Amount Rs. In lakh 1. Custodian Account Citibank 5011666247 39583.66 2. Religare Securities Ltd 13042.52 3. Bonanza Portfolio Ltd 17631.72 4. Shiv Raj Puri (HDFC Bank) 41930004342 2459.27 5. Shiv Raj Puri (Standard Chartered Bank) 53110532540 4148.80 6. DeekshaPuri (HDFC Bank) 419 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tibank Cheque 325985 dated 13.07.2011. 7.5 That, the Hon ble Judicial Magistrate, 1st Class, Gurgaon Shri Ashok Mann, in his order dated 25.02.2014, in the criminal case under FIR No. 341 dated 27.12.2010, registered u/s 420, 467, 468, 471, 409, 120-B and 201 IPC, held the following accused guilty of the offences and awarded the sentences vide order dated 28.02.2014, as mentioned against each:- (i) Shiv Raj Puri Guilty under Section 409,420, and 120-B r/w 420 of IPC and awarded rigorous imprisonment for 2 years and six months and a fine of ₹ 10,000/- for each offence (ii) Sanjay Gupta Guilty under Section 420 and 120 read with 420, IPC and awarded rigorous imprisonment for 2 years and six months and a fine of ₹ 10,000/- for each offence; (iii) Gaurav Jain Guilty under Section 120-B read with 420 IPC and awarded rigorous imprisonment for 2 years and six months and a fine of ₹ 10,000/- for each offence. It was further ordered that the substantive sentences shall run concurrently. Fine paid. Red ink note be given on the file cover to the effect that same shall not be destroyed as ti shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. A/c No. 910020019164197 M/s N/G/ Financial Services 5,23,08,849.67 6. A/c No. 910020021019874 with Axis Bank, New Delhi M/s G2S Management Consultants 1,23,55,150.10 7. Plot of land at No. C1/627, PalamVihar, Gurgaon SmtKiran Jain W/o ShriGauravjain 50 lakh (+₹ 2.65 lakh towards registration and stamp duty Total ₹ 18,70,14,593/- Attachment of all these aforementioned properties has been confirmed by the Adjudication Authority, PMLA vide its order dated 20.03.2013. (B) PROVISIONAL ATTTACHMENT ORDER No. 07/2013 DATED 31.12.2013 (FOR ATTACHMENT OF THE FOLLOWING SEVEN PROPERTIES OF SHRI SHIV RAJ PURI, 425A, Hamilton Court, DLF Phase-II, Gurgaon):- S. No. Details/particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisional attachment order was passed attaching various properties of the accused persons. Thereafter, an Original complaint No. 257/2014 dated 31.12.2013 has been filed before Adjudicating Authorities, PMLA, In respect of above Provisional Attachment Order seeking confirmation of attachment of all the aforesaid seven properties issued vide said PAO by the impugned order which is under challenged. 15. The funds for purchase of following immovable properties, in his name, were generated from various brokerage accounts through the investments made therein under the aforesaid scheme and payments were made from his Standard Chartered Bank (SCB) A/c No. 53110532540 and HDFC Bank A/c No. 00441930004342 his reply to question No. 1 recorded on 09.11.2012, also question No. 14 and his reply thereto recorded on 16.08.2012 and question No. 6 and his reply thereto recorded on 14.09.2012):- Name of property Details of payment made Name of Bank and accounts No. Modeof payment Draft/Cheque No. Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rggaon 637- Sqft HDFC 00441930004342 DD666115 dt 4.12.09 5,00,000/- Emerald Plaza SCB 53110532540 808306 dt 10.3.10 2,86,952/- 808332 dt 20.3.10 2,86,952/- 746536 dt 25.1.10 73,903/- 261489 dt 17.10.10 18,13,533.48 Total Amount 29,61,340.48 EMAAR MGF Emerald Hills-Emerald Plaza-2, Office Space028 Gurgaon, 53/Sqft HDFC 00441930004342 DD 66616 dt 4.12.09 5,00,000/- Emerald Plaza SCB 53110532540 808307 dt 10.3.10 2,86,952/- 808333 dt 20.03.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven by ShivrajPuri to the Police during investigation have been filed. 21. It is also stated by her that ShivrajPuri had also forged the Appellant s Signatures and had filed a Divorce application in the Gurgaon Court in July 2009. However, in the same year, Mr. ShivrajPuri promised the Appellant to put an end to all such illicit relationship and start afresh in a new house and during the hunt for a new house, the couple came across with house no. M-4/9 Phase-2 Gurgaon which was found suitable in terms of location and affordability. Finally, the said house was purchased by Mr. ShivrajPuri for and in trust for his wife Ms.NidhiUppal, the Appellant herein. The said house was funded with borrowings from his father/friends, redemption of his investments, personal savings and the gifts received by the couple from the relatives and friends in and after marriage. The House was finalized in September 2009 and payment for the same was made on 25 September, 2009 through Standard Chartered Bank DD No. 344416 amounting to INR 32 Lacs and then on 29th Oct 2009 through Standard Chartered Bank DD Number 050661 amounting to INR 93 Lacs. 22. 1st Installment paid by Shivra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum of ₹ 38 Lacs + Interest on Loan to furnish and renovate the house. The Appellant has filed the details of the lawful borrowings / spending made by her in relation to the said property. 27. When she came to know about disgraceful act of ShivrajPuri was shared with her by Citibank Team on 9th December 2010, she had no option but to put an end to the marriage at that time she was residing in House M-4/9 DLF Phase 2 Gurgaon. She got right to the title of the property through the gift deed dated 22nd December, 2010. 28. The Appellant initiated her divorce application on 23rd December, 2010 which was submitted to the Family Court and the 1st Motion was filed on 06th January 2011. It is the admitted position that none of her savings accounts were attached during their investigation in December 2010. It is alleged by her that prior to December, 2010, she was unaware about the misdoing of ShivrajPuri and her innocence and non involvement was further proven when the Appellant was not namedin FIR No. 341/2010 dated 27th December, 2010 registered at PS DLF Phase-II under sections 420/467/468/471/120B or any proceedings arising therefrom. During the inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Account viz Custodian Account bearing No. 5011666247 was fraudulently opened with Citi Bank, Gurgaon in the joint names of ShriPremNath, Smt. ShielaPremNath Smt. DeekshaPuri, all of whom are close relations of Shri Shiv Raj Puri, who was working as Relationship Manager, in Citi Bank, Gurgaon. A large number of investors were lured to deposit funds in the said Custodian Account and fraudulently prepared hand written deposit receipts which were issued to the investors on printed Citi Bank stationery, with the intention to show that the said Scheme was floated by the Citi Bank. The said Custodian Account was fraudulently used as a conduit to subsequently transfer funds to various accounts of the accused/suspect persons or their relatives maintained with various Brokerage Companies, viz. Religare Securities Ltd, Bonanza Portfolio Ltd, India Infoline, etc. and that the said investors were kept in dark that their funds were being invested in such a manner. 33. The deal of the house was finalised in September, 2009 and payment for the same was made much prior to the floating of the scheme which is the basis of the case. The appellant s home M-4/9, DLF Phase 2, Gurgaon w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellant has tried to initiate the remedy before Punjab and Chandigarh High Court also requesting that her plea should be heard at the earliest as she has been running from pillar to post since June 2011. The said proceedings before Chandigarh High Court have no bearing on the present case as the impugned order has been challenged before us by filing of an appeal under Section 26 of the Act. 37. The Respondent has failed to submit any copy of the bank statement of Standard Chartered Bank for the period 2005 to 2011 or the Complaint / FIR against the accused prior to September 2009 to prove that the appellant s property M-4/9 DLF Phase -2 Gurgaon was directly bought through the proceeds of crime, rather the documents submitted by the respondent themselves confirm that their case involves proceeds of crime that came in Citibank Custodian Account that was opened by the accused in the case on 27th Oct 2009 bearing Account Number 5011666247. 38. From the investigation conducted so far, it has inter-alia emerged that Shri Shivraj Puri by abusing his official position as the Relationship Manager in Citibank Gurgaon, and in furtherance to a criminal con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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