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IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
Pankaj Bhandari, J.
Anoop Bartaria - Appellant
Versus
Dy Director, Enforcement Directorate, Jaipur - Respondent
Criminal Writ No. 704 of 2018, 757 of 2018
Decided On : 21-02-2019
Prevention of Money Laundering Act, 2002 - The Act is a complete code dealing with the powers of investigation, attachment, adjudication, and confiscation, summons, searches, and seizures. Offences under the Act are cognizable and non-bailable. Special Courts have been constituted for trial. The Act gives overriding effect to its provisions.
Fact of the Case:
Petitioner filed a writ petition to quash ECIR registered by Enforcement Directorate. Investigation revealed that petitioner was involved in money laundering. Complaint has been filed and Special Court has taken cognizance. Writ petition dismissed. Cost of Rs.50,000 imposed.
Finding of the Court:
The court analyzed the provisions of the Prevention of Money Laundering Act, 2002 and held that the offences under the Act are cognizable. The court also rejected the argument that the criminal proceedings should be stayed pending the appeal before the Appellate Tribunal. The court further held that the proceedings cannot be quashed as there is sufficient evidence of money laundering against the petitioner.
Ratio Decidendi: Offences under the Prevention of Money Laundering Act are cognizable. Criminal proceedings cannot be stayed pending appeal before the Appellate Tribunal. Proceedings cannot be quashed if there is sufficient evidence of money laundering.
Result: Writ petitions dismissed with a cost of Rs.50,000.
JUDGMENT
Pankaj Bhandari, J. - Petitioner has filed Criminal Writ Petition No.704/2018 with a prayer that ECIR No.JPZO/01/2016, registered by Jaipur Zonal Office of Enforcement Directorate qua the petitioner be quashed. The other prayer is that respondents be directed not to file any criminal complaint against the petitioner in respect of the said ECIR and not to take coercive steps against the petitioner in respect of ECIR.
2. It is contended by learned counsel appearing for the Enforcement Directorate that complaint has already been filed, hence writ petition for quashing ECIR has become infructuous.
3. Petitioners have preferred Criminal Writ Petition No.757/2018, with a prayer to quash and set aside the prosecution complaint in ECIR No.JPZO/01/2016.
4. As per the petitioners, the facts of the case are that petitioners are the Chairman & Managing Director of World Trade Park Ltd. which has constructed an urban infrastructure project popularly known as WTP at J.L.N. Marg, Jaipur. Bharat Bomb booked spaces through their company M/S Raj Darbar Material Trading Pvt. Ltd. and paid advance amount. Bharat Bomb sent communication that the commercial units booked, should be registered in the name of third parties. Petitioners, therefore, returned back the amount deposited by M/S Raj Darbar Material Trading Pvt. Ltd. and after obtaining money from new entities, registered the properties in the name of new entities. The possession of such units was also handed over to the buyers.
5. An F.I.R. No. RCBD1/2016/E/02 dated 07.03.2016 was registered by CBI, BS&FC, New Delhi against the officials of Syndicate Bank's three branches for offence under Sections 120-B, 420, 467, 468, 471, 472 & 474 of IPC and Sections 13 (2) read with 13(1)(d) of the Prevention of Corruption Act, 1988. The allegation was of siphoning Rs.1055.79/- crores. Charge-sheet was also filed in that case. Since some of the offences registered by CBI were scheduled offences under the Prevention of Money Laundering Act, 2002 (hereinafter referred as 'PMLA Act'), Directorate of Enforcement official initiated investigation for the offence of money laundering by registering ECIR dated 11.07.2016.
6. As per the Enforcement Directorate, the facts of the case are that a complaint was received by CBI that Bharat Bomb Chartered Accountant and his associates have cheated the Bank by discounting fake cheques, withdrawing money through overdraft facility using forged life insurance policies and discounting fake inland bills that were raised against letters of credit shown to have been issued by another bank. The total amount cycled or recycled was about 18.685.566 crores which resulted in siphoning of Rs.1055.79 crores. Enforcement Directorate, Zonal Officer, Jaipur initiated investigation for offence of money-laundering by registering ECIR No.JPZO/01/2016 dated 11.07.2016 as the offence registered by DBI were scheduled offences under the PMLA, 2002.
7. From investigation it was revealed that petitioners and his companies vig M/S World Trade Park Pvt Ltd, M/S RF Trading & Properties and M/S Sincere Infrastructure Pvt Ltd received more than Rs.160 crores defrauded fund from October, 2013 till unearthing of fraud from the accounts of fictitious firms created by Bharat Bomb. It is also revealed from investigation that petitioners contrary to the terms and conditions of finance by IDBI & DHFL opened two current accounts with Syndicate Bank to receive accommodation loan to repay Bharat Bomb instead of depositing the sale proceeds in escrow account. The total amount received was 160 crores whereas the sale consideration was only 78.99 crores. It is also revealed that DGM Syndicate Bank has filed an FIR against the petitioners for obtaining accommodation loan of Rs.4.80 crores even when net income of petitioners was less than Rs.5,00,000/- per annum.
8. The investigation has also revealed that even after purchasing few properties, petitioners sought for NOC from Bank for selling the property to Raj D
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