APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI FPA-PMLA-2948/MUM/2019 Alchemist Asset Reconstruction Co. Ltd. … Appellant Versus The Deputy Director Directorate of Enforcement, Mumbai … Respondent Advocates/Authorized Representatives who argued For the Appellant: Ms. Varsha Banerjee, Adv. Ms. Mahima Ahuja, Adv.

For the Respondent: Mr. Pankaj Pandey, Adv.

CORAM SHRI G.C. MISHRA : MEMBER SHRI RAJESH MALHOTRA : MEMBER

FINAL ORDER

19.05.2025 Dictated by: Rajesh Malhotra Present appeal under Section 26 of Prevention of Money Laundering Act, 2002 (PMLA) is filed by the Appellant Alchemist Asset Reconstruction Company Ltd. against the Order dated 04.01.2019 passed by the Adjudicating Authority in Original Complaint No. 1008/2018 (OC), whereby the properties of the accused persons including the mortgaged properties assigned to the present Appellant (vide Assignment Deed dated 12.01.2016) were confirmed for attachment. The details of the said mortgaged property is as under:

2. As per the facts of the case, on complaint from an investor, MRA Marg Police Station, Mumbai registered an FIR No. 216/13 dated 30.09.2013 for commission of offences Section 120-B IPC r/w 409, 465, 467, 468, 471, 474, 477-A of IPC and substantive offences thereunder. After transfer of investigation to EOW, Mumbai Police, the said FIR has been renumbered as CR No. 89 of 2013. The complainant stated that he had been induced into making investments by false representations and assurances given by the promoters and senior management of National Stock Exchange Limited (NSEL) with a deliberate intention to dishonestly misappropriate his funds and had been cheated by NSEL with practically little hope for recovery of the amounts on the contracts. He was cheated by NSEL by creating a false impression of being a proper Spot Exchange with correct risk management systems in order to induce him to trade and deliberately mislead that their trades were backed by genuine ware house receipts. The sellers desirous to sell/buy through NSEL have to compulsorily deliver the commodity in the NSEL designated warehouse of a particular location specified in the Exchange Circular. However, it was ascertained that the certified warehouses of NSEL lacked capacity and some of them had no stocks. Thus, the genuine investors were defrauded of their investments by way of serious misappropriation from the fact that NSEL allowed trading on commodities by sellers, without ensuring goods of appropriate quantity and quality stored in the exchange-controlled warehouses, which resulted in thousands of investors trading in non-existent goods.

The said FIR was filed against Directors and Key Management persons of NSEL, M/s Financial Technologies India Ltd. (FTIL – now known as M/s 63 Moon Technologies Ltd.), 25 borrowers/trading members of NSEL including M/s NCS Sugars Ltd. & its directors.

Accordingly, the Directorate of Enforcement, Mumbai Zonal Office recorded ECIR/MZO/14/2013 dated 14.10.2013 for initiating investigation for the offence of money laundering under the provisions of the Prevention of Money Laundering Act, against accused persons including the entity i.e. M/s NCS Sugars Ltd.

On enquiry, it was gathered that NSEL was incorporated in 2005. The controlling shareholder of NSEL is M/s Financial Technologies (India) Ltd. (FTIL) holding 99.99% of the shareholding of NSEL. The exchange offered an electronic platform for compulsory delivery-based spot contracts in various agricultural and non-agricultural commodities. The basic idea was to provide a place where farmers, traders, corporate, processors, planters, manufacturer