9911796707
TMI Blog2024 (8) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... d argument is in reference to the facts of the case. It is submitted that the amount was withdrawn by the appellant from time to time and has been reflected in the bank account - HELD THAT:- The bank account shows withdrawal of Rs.6.5 lakhs and 8 lakhs on the relevant date and may be lying in the office for that reason but appellant has failed to clarify as to how the Company used to utilize the money after its withdrawal because if the matter is looked in sequence of events, the total transaction in the hands or through the appellant s company comes to Rs.15 Crore and odd. If the appellant was involved in foreign exchange business, the withdrawal of the amount should have been shown to have utilized for foreign exchange and for that to produce the document. The appellant has failed to do so - there are no case in favour of the appellant. Appeal dismissed. - JUSTICE MUNISHWAR NATH BHANDARI : CHAIRMAN And SHRI BALESH KUMAR : MEMBER For the Appellant : A. M. D. Mohd. Salih Hussain , Adv For the Respondent : Shri Nattasha Garg , Adv ORDER FPA-PMLA-4703/CHN/2022 By this appeal under Section 26 of the Prevention of Money Laundering Act, 2002 (in short `the Act of 2002), a challenge is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel further submitted that the signatures of the appellant were taken on various papers typed and hand written and they were ordered to appear before the authority on 29.11.2021. The appellant appeared before the authority and thereupon a detailed books of accounts of the Head Office and Branch Office were sent to justify availability of the amount and even to clarify that there was no Hawala transaction through the appellant. In view of the above, the impugned order deserves to be set aside. 8. The learned counsel for the appellant referred to the bank statement of the date prior to the seizure to indicate withdrawal of a sum of Rs.8 lakhs approx. and Rs6.5 lakhs in two transactions and thereby available in the office. The allegation of the respondent in Hawala transaction involving more than Rs.15 Crore during the period is without any basis, rather ignoring the fact that the appellant was in no way connected with the crime. Any transaction in the course of business would show the source of acquisition of money and its transaction subsequent thereto. The appellant utilized the amount withdrawn from the bank for foreign exchange but all those aspects were ignored by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated to cash transactions, including image/number of 10 rupees note of token number. It is lastly stated that by the counsel for the respondent that investigation qua appellant company and its directors is yet to be completed followed by a prosecution complaint. The prayer was made to dismiss the appeal. 13. We have considered the rival submissions of the parties and perused the record. 14. The facts on record shows that a search on the office premises of the appellant Company was conducted after information about the Hawala transaction. It was on an information that one Sukesh Chandrasekhar, reckoned criminal, was involved in transferring the proceeds of crime generated out of the criminal activities in Chennai. The operation of Hawala transaction was through Arun Muthu and Leena Paulose, wife of Shri Sukesh Chandrasekhar. The statement of Arun Muthu under Section 50 of the Act of 2002 was sufficient to show involvement of the company for making transaction after withdrawal of the cash amount from the bank almost on daily basis. The amount was to be given or to be transferred to ArunMuthu or Leena Paulose, wife of Sukesh Chandrasekhar. The allegation against the appellant could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath any person, who is found to be in possession or control of any record or property, in respect of all matters relevant for the purposes of any investigation under this Act: A bare reading of Section 17 indicates possession of any proceeds of crime involved in money laundering and it is not only that it should be with accused but can be with any one. In fact, if one is in possession of any property related to crime then it can be made subject matter of seizure under Section 17(1)(ii) of the Act of 2002. Sections 17 to 21 endorses the view taken aforesaid. It is not necessary that under all circumstances, the seizure can be from a person accused in the FIR or the ECIR. It can be other than the accused but only when he or she is in possession of the proceeds of crime. In the instant case, the facts elaborately given while narrating the rival submissions shows that appellant was involved in money transaction to give shape to Hawala transaction. The documents referred by the counsel no doubt indicates withdrawal of the amount of Rs6.5 lakhs and 8 lakhs approx. before the date of seizure and thus the amount is said to be lying on authorized withdrawal from the bank. One lakh and odd w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
