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TMI Blog2023 (4) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. 3. A criminal complaint in FIR No.664/2013 was registered on 29.10.2013 with the Cyberabad Police, against six persons, including the appellant herein for alleged offences under Sections 406, 407, 415 to 420, 120B read with Section 34 IPC. The FIR was registered on the basis of a complaint lodged by one M. Srinivas Reddy, who was the Managing Director of a Company by name M/s Farmax India Limited hereinafter referred to as "Farmax". The gist of the complaint was, that Farmax availed the services of the accused in raising Global Depository Receipts (GDRs), to the tune of USD 71.09 millions equivalent to INR 318 crores; that though the accused raised the said amount, they transferred to Farmax only a sum of USD 0.4 millions equivalent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After the lodging of the Enforcement Case Information Report, the appellant was arrested by the Enforcement Directorate on 26.09.2022. By an Order dated 27.09.2022, the appellant was remanded to judicial custody by the Metropolitan Sessions Judge, Hyderabad. The Court also granted the custody of the appellant to the Enforcement Directorate for a period of six days from 06.10.2022 to 11.10.2022. 8. Subsequently, the Enforcement Directorate filed a prosecution complaint under Sections 44 and 45 of PMLA against four individuals and two entities, namely, (i) Shri Sanjay Aggarwal, (ii) Shri Morthala Malla Reddy, (iii) Shri Arun Panchariya, (iv) Shri Mukesh Chauradiya, (v) M/s La Richesse Advisors Private limited represented by Shri Sanjay Aggar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nchariya to Srinivas Reddy; and that the appellant and the others had committed the offence of money-laundering. 9. According to the Enforcement Directorate, the appellant was responsible for creating the entire infrastructure for Farmax and Arun Panchariya to bring about the fraudulent GDR issue and that the appellant provided formats for Board Resolutions and also helped in transferring the funds from the account of Farmax with EURAM Bank to the Farmax subsidiary, namely, M/s. Farmax International FZE in UAE. 10. In the background of the above facts, it is contended by Shri R. Basant, learned senior counsel: (i) that the appellant has been languishing in jail from 26.09.2022, without any charge-sheet having been filed against him in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... armax India Limited decided to proceed with plans for a GDR listing. At this point of time M/s Farmax India Limited was not eligible for USD 72.20 million GDR. Sanjay Agarwal and M/s La Richesse, accompanied by Nitish Bangera took the lead role coordinating the offering. Sanjay Agarwal decided on all the participants, including the Lead Arranger (Prospect Capital) and the company's legal advisor ("Fox Mandal"). Although, Fox Mandal acted as counsel to Farmax, the email communications indicate that its role was limited to preparing a due diligence report and the Listing Prospectus ("Prospectus") to be filed with the Luxembourg Exchange. b) Sanjay Agarwal acted as an intermediary for almost all communications with the various participa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rosecution complaint in the year 2022 were a sequel to the registration of the FIR for the predicate offence, way back in the year 2013, at the instance of one M. Srinivas Reddy, Managing Director, Farmax and also a sequel to the order passed by SEBI in the year 2020; (ii) that no final report has been filed in the FIR for the predicate offence, for the past nine years; (iii) that even M. Srinivas Reddy, the de-facto complainant in the FIR for the predicate offence, was sought to be arrested as an accused in connection with the ECIR, but the application of the Enforcement Directorate for remand was rejected; (iv) that the appellant is a Chartered Accountant by profession and has been in jail from 26.09.2022; and (v) that the relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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