BEFORE RAJESH MALHOTRA, MEMBER; SINGLE BENCH:

APPELLATE TRIBUNAL UNDER SAFEMA; AT NEW DELHI.

FPA-PMLA-2201/BNG/2018 Shri M.T.V. Reddy … Appellant Versus The Deputy Director, Directorate of Enforcement, Bangalore … Respondent Advocates/Authorized Representatives who Argued For the Appellant : Mr. Kirit S. Javali, Adv.

For the Respondent : Mr. N.K. Matta, & Mr. A.R. Sharma, Advs.

FINAL ORDER

25.03.2025 The present appeal u/s 26 of the Prevention of Money Laundering Act, 2002 is filed by the appellant against the order dated 15.01.2018 passed by the Adjudicating Authority in Original Complaint No.822/2017, whereby it confirmed the attachment of properties, attached by the ED vide by PAO No.11/2017 dated 19.09.2017. The detail of the property of present appellant is mentioned as under:-

5. 15.151/01-02 A Commercial vacant BDA site bearing No.883, Nagarbhav 90,000/-

Dated 16.02.2002 1^st phase, 4^th block, HRBR Layout, Bengaluru, measuring 80ft x 50 ft. purchased in the year

2002 for Rs.90,000/-.

2. As per the facts of the case, Central Bureau of Investigation, BankSecurity and Frauds Cell, Bengaluru registered FIR in crime no.RC02/E/2008-CBI/BS & FC/Bengaluru dated 01.02.2008 and filed chargesheet no.07/2009, dated 24.09.2009 before the Court of Ld. Special Judge, CBI Court, Bengaluru for the commission of offences, punishable u/s 120-B IPC r/w Section 420, 471, 467 of IPC and also r/w 13(2) r/w 13 (1) (d) of the Prevention of Corruption Act, 1988 and the substantive offences thereunder against the accused persons, namely, M/s. Astra Developers and its partners Sh. H.S. Suresh and Sh. A. Bharathraj, and also against Sh.

M.T.V. Reddy, the bank official. As per investigation, the partners of M/s Astra Developers got sanctioned 88 housing loans to the extent of ₹ 6.20 crores to some individual buyers of sites/houses from M/s. Astra Developers in the four projects developed by them, by submitting forged and fabricated documents of the individual buyers and the plan approval of the layouts, to State Bank of Mysore, Gandhi Nagar branch, Bengaluru in collusion with Sh. M.T.V. Reddy (herein appellant) who was the then Chief Manager of the said branch. They caused wrongful loss to State Bank of Mysore and wrongful gain to themselves.

As the said offences are scheduled offences, the Directorate of Enforcement, Bengaluru Zone recorded ECIR No.91/BZ/2010 dated 23.11.2010 for initiating investigation under PMLA, 2002 and to trace out the trail of proceeds of crime. During investigation ED recorded the statements of the suspects/accused persons and others and also collected the documents from various sources including the investigation agency and the banks. During the course of investigation, it was revealed that many of the loanees were not presently available at the addresses furnished to the State Bank of Mysore, Gandhi Nagar branch. One of the loanee Smt. S. Nirmala stated that she is employed with BSNL and her colleague had introduced her to one Shivalingappa, who was arranging sale of plots and houses at the Tarabanahalli project (of M/s Astra Developers). She was to purchase a house in this project and she was introduced to Sh. H.S. Suresh, who took her to the Chief Manager, SMB, Gandhinagar branch and she was made to sign the printed loan application agreement etc. and also was made to sign some blank papers. She did not know the housing loan amount or the account number and after one month she had visited the site and saw that in very few plots, houses were constructed and no construction had taken place in her plot. She had not made any payments to the bank.

When loan account statement was shown to her, she stated that she was not aware of the loan sanctioned, nor did she pay any EMI and whatever payments were made into the said loan account were not paid by her. Similar statement was made by Smt. Sithamma T.G., Smt. Prema Kumari and Smt. M.D. Vijayvani. From the initial investigation conducted by ED, it was concluded that M/s. Astra Developers h