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TMI Blog2024 (10) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... correctly seized/frozen by respondent ED. The appellant M/s RAP Events cannot be allowed for unjust enrichment out of the proceeds of crime, simply because, appellant was ignorant about the nature of said remittance. The present appeals are liable to be dismissed being devoid of any merits - Appeal dismissed. - G.C. MISHRA AND RAJESH MALHOTRA For the Appellant : Saurabh Kapoor, Rishabh Kapoor and Ms. Madhvi Khandelwal, Advs. For the Respondent : Arjun Sawhney and Rohan Bhambri, Advs. ORDER Rajesh Malhotra, Member. Present appeal u/s 26 of the Prevention of Money Laundering Act, 2002, is filed by the appellant company against the impugned order dated 12.09.2017 passed by the Adjudicating Authority in Original Application No. 93/2017, whereby it allowed the respondent ED to retain/seize/freeze the documents, digital records, bank accounts etc., seized from the premises of various persons including the present appellant company, during the search conducted on 07.04.2017. 2. As per the facts of the case, on the basis of a complaint made by the Indian Overseas Bank, CBI, BS FC, New Delhi had registered an FIR No. RCBD1/2016/E/0007 dated 08.08.2016 under Section 120B r/w 420 of IPC and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion with others to cheat the Bank. Further, the overseas banks had provided Buyers Credit to their customers on the basis of the LOUs issued by the IOB, Chandigarh and hence the said overseas banks were demanding IOB to remit the said amount to them. It has been further informed by the IOB that on verification of their records, it was found that no such request for LOU to the Buyers Credit was authorized by the Branch Manager and LOUs were issued fraudulently through swift messages by Ashu Mehra and other bank staff (Accused Nos. 2 3) by abusing their official position. (vi) Ashu Mehra of IOB, in collusion with other staff members, by indulging in aforesaid modus-operandi, had created liability against the bank to the tune of Rs. 321 crores (calculated at the exchange rate of Rs. 67/-per USD) which was due for payment between 01.07.2016 to 28.01.2017 that further it was alleged that there was no movement of goods services or underlying commercial transactions behind these fraudulent transfers of funds. (vii) On the basis of the fraudulent LOUs issued by Sh. Ashu Mehra, the foreign banks have credited the accounts of the beneficiary i.e. M/s. Colour Wave (HK) Ltd. The bank had also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Colour Wave (H K) Ltd., Hong Kong, had created a liability of Rs. 321 crores on the Indian Overseas Bank, Branch at Sector 7, Chandigarh. This amount of Rs. 321 crores are still outstanding on IOB. In order to unearth/trace the proceeds of crime under PMLA on 07.04.2017 searches u/s 17 of PMLA were conducted on various places/premises. Thereafter, many bank accounts, lockers and properties were frozen. Thereafter, Original Application being OA No. 93 of 2017 (OA) in ECIR No. CDZO/06/2016 was filed by the respondent under section 17(4) of the PMLA, 2002, in May 2017 seeking for directions to retain certain articles/vehicles/ documents seized and properties the bank accounts frozen by the respondent, as listed in the aforesaid OA No. 93 of 2017. The said OA No. 93 of 2017 was allowed vide order dated 12.09.2017. Aggrieved by the said order, appellant filed the present appeal. 3. In the present appeal, Ld. Counsel for appellant M/s RAP Events submitted that appellant is a partnership firm of Sh. Rakesh Kumar Rohitaz Kumar, running a business of events on behalf of its clients and holds assets, inter alia, in the shape of various investments in their firms. He further submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby direct the respondent ED to release the above bank account. 4. On the other hand, Ld. Counsel for respondent ED submitted that certain bank accounts properties were identified belonging to the accused and their associate companies as a result of information and also as a result of searches conducted by the respondent ED. Sh. Aman Kirpal along with other bank officials of Indian Overseas Bank main branch Chandigarh fraudulently intercepted messages and issued letter of conformity/letter of undertaking to the foreign banks for the Buyers Credit extended by them. Sh. Aman Kirpal along with others issued 24 Line of Credit (LOC) fraudulently through SWIFT messages to provide buyers credit facility which was to supposed to export goods but the same was granted to the aforesaid company through fraud. But as per the bank, there was no movement of goods services or underlying commercial transaction between these fund transfers. The amount due on account of Buyers Credit was not paid to the bank before the due date resulting in liability of Rs. 321 crores. This was done in collusion with the accused companies and their directors/proprietors and have caused loss to the bank to the tune o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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