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TMI Blog2024 (11) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred on behalf of co-accused Tarun Kumar was thereby dismissed: "3. The broad facts and events as discernible from the record may be stated as under: (i) M/s. Shakti Bhog Foods Ltd. (SBFL) was engaged in manufacturing and selling food items under the brand name of "Shakti Bhog". The company was managed through its Directors/Guarantors - Sh. Kewal Krishan Kumar, Sh. Siddharth Kumar and Smt. Sunanda Kumar. The appellant is the nephew of Sh. Kewal Krishan Kumar, and was shown as one of the employees in SBFL. (ii) The consortium of banks led by the State Bank of India vide the Letter of Engagement dated 18.05.2018 engaged the services of a Forensic Auditor - BDO India LLP for conducting the Forensic Audit of SBFL. (iii) The Forensic Auditor conducted audit review for the period 01.04.2013 to 31.03.2017 and submitted the report on 25.06.2019, disclosing several financial irregularities and discrepancies in the functioning of SBFL, and alleged that SBFL had failed to discharge its loan liability and caused loss to the consortium member banks to the tune of Rs. 3269.42 crores. (iv) An FIR being NO. RC0742020E0014 came to be registered on 31.12.2020 by the CBI, Bank Secu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (petitioner), Raman Bhuraria (CA) and others were involved in paper sale transaction without conducting any actual business transactions which resulted in false inflation of financials. The complex web of transactions is stated to have been created and borrowed funds were channelized through bank accounts of several Shakti Bhog entities and shell entities operated inter alia by Devki Nandan Garg and Ashok Kumar Goel. 5. As per Enforcement Directorate, 20 accused have been arrayed in proceedings including SBFL and the evidence against the petitioner has been highlighted in paragraphs 15 to 20 of reply dated 12.07.2023 as under: "15. Siddharth Kumar was not only Director/Promotor in Shakti Bhog Foods Limited (SBFL) but also an active Director in SBFL's group companies- Bhawna Portfolio Pvt. Ltd., Elanza Investment Pvt. Ltd., Sumesh Financers Pvt. Ltd., Goel Securities & Credits Limited, Divyarth Healthcare Pvt. Ltd. etc. That Siddharth Kumar was actively assisted in the day to day functioning of SBFL. Shareholding pattern and details of directorship of Siddharth Kumar in SBFL and its group companies are given below:- Sr. No. Name of Companies where Siddharth Kumar was Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortfolio Pvt. Ltd. (0.62%) 2. K.D.M. Media Pvt. Ltd. (8 .52%) 3. Divyarth Leasing & Finance Pvt. Ltd. (0.23%) 4. Sumesh Financers Pvt. Ltd. (7.55%) 5. Pancy Holdings Pvt. Ltd. (42.28%) 6. Crest Agro Foods Ltd. (30.84%) 7. Shubhangi Finvest Pvt. Ltd. (53.02%) Dinkar Holding Pvt. Ltd. 9. Fruto Freesh Pvt. Ltd. 1. Kumar Food Industries Ltd. (4.22%) Fruto Freesh Pvt. Ltd. 10. Crest Agro Foods Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0.40%) 2. Divyarth Leasing & Finance Pvt. Ltd. (0.10%) 3. Elanza Investment Pvt. Ltd. (0.65%) 4. Kalyani Finvest Private Limited.(0.05%) 5. Phlox Investment Pvt. Ltd. (3.15%) - 11. Shubhangi Finvest Pvt. Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0 .61%) 2. KD.M. Media Pvt. Ltd. (9.20%) 3. Divyarth Leasing & Finance Pvt. Ltd. (7.80%) 4. Sumesh Financers Pvt. Ltd. (7 .55%) 5. Dinkar Holding Pvt. Ltd. (11 .10%) 6. Crest Agro Foods Ltd. (30.84%) 7. Dash Exports Private Limited. (29%) - 12. VizzyFinvest Pvt. Ltd. 1. Bhawna Portfolio Pvt. Ltd. (0.48%) 2. Kumar Food Industries Ltd. (4.96%) 3. Divyarth Leasing & Finance Pvt. Ltd. (3.56%) 4. Pancy Holdings Pvt. Ltd. (5.82%) 5. Divyarth Healthcare Pvt. Ltd. (8.67%) VizzyFinvest Pvt. Ltd. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper transactions were done on instructions of KK Kumar & Siddharth Kumar. Raman Bhuraria used to aid and advise in these transactions. I want to state that these paper transactions were done in assistance of Tarun Kumar, Sandeep Mishra, Vijay Malhotra, Anshu Gautam & myself." These statements found reverberations in the statements of Sandeep Mishra, Manager Accountant (SBFL), Avik Das, Vijay Malhotra, CFO and Ashok Kr. Goel, Entry Operator recorded u/s50 of PMLA, 2002. 19. That Siddharth Kumar managed and controlled export business of SBFL with its Dubai Based overseas subsidiary - M/s Shakti Bhog, FZE but out of the goods exported to this company, export proceeds worth Rs.150 Crore were not reported in the books of accounts of SBFL, nor were the same repatriated back to India. It is further submitted that statement of Jagdeep Vashist, Employee of SBFL was recorded u/s 50 of PMLA, 2002 on 02.07.2021, wherein he inter alia stated that export turnover of SBFL is Rs. 400 Cr annually, however foreign inward remittance of approx. Rs. 100-120 Cr only has been received in bank accounts of SBFL. From the foregoing, it is found that significant amount of funds towards proceeds of exports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orised Signatory. The amounts are further stated to have been transferred from Vizzy Finvest Pvt. Ltd and Elanza Investments Pvt. Ltd. to M/S S.R. Foils and Tissue Ltd. 7. It may also be noticed that the prosecution complaint was initially filed by Enforcement Directorate on 01.09.2021, and the third supplementary prosecution complaint was filed on 18.08.2022 inter alia arraying the petitioner as an accused. Contentions on behalf of the petitioner 8. Learned counsel for the petitioner submits that the petitioner was involved with domestic marketing and in the Export Division of M/s Shakti Bhog Foods Ltd., through a company named Shakti Bhog FZE operating out of Dubai. Further, various documents were signed by the petitioner at the behest of his father Kewal Krishan Kumar. The allegations regarding alleged fraud and money laundering are vehemently denied and it is urged that they can be ascertained only during trial. The role of the applicant/petitioner is further stated to be much less than of co-accused Tarun Kumar whose bail was declined by the Hon'ble Apex Court. 9. Learned counsel for the petitioner further emphasizes that petitioner has spent over 26 months in custody, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he points out that role of the petitioner is graver than co-accused Tarun Kumar, whose bail application stands rejected by the Hon'ble Apex Court. Petitioner is stated to be son of Kewal Krishan Kumar, who was the main Promoter and Managing Director of SBFL, while Tarun Kumar was the Vice President of SBFL and nephew of Kewal Krishan Kumar. The averments raised by the petitioner with reference to the status of petitioner in predicate offence, parity with co-accused Raman Bhuraria (CA) who was granted bail by this Court and delay in completion of trial are stated to have also been raised by co-accused Tarun Kumar, whose bail application was rejected. It is pointed out that Hon'ble Apex Court upheld the admissibility of Section 50 PMLA and the statements of the witnesses recorded therein and points out that material evidence against the petitioner cannot be ignored. Co-accused Kewal Krishan Kumar and Devki Nandan Garg are stated to have been granted bail on medical grounds invoking proviso to section 45 PMLA. The role of Raman Bhuraria (CA) is further stated to be distinguishable since he was only an internal auditor of SBFL. 11. Learned Special Counsel for Enforcement Directorate f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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