APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI FPA-PMLA-2896/CHN/2019 M/s Nathella Sampath Jewelry Pvt. Ltd. (Under Liquidation)

through- Liquidator Sh. R. Raghavendran … Appellant Versus The Deputy Director Directorate of Enforcement, Chennai … Respondent Advocates/Authorized Representatives who argued For the Appellant: Mr. Ashkrit Tiwari, Ms. Richa Singh & Mr. Rajendra Beniwal, Advs.

For the Respondent: Mr. Chandra Prakash, Adv.

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

FINAL ORDER

01.05.2025 Dictated by: Rajesh Malhotra Present appeal under Section 26 of Prevention of Money Laundering Act, 2002 (PMLA) are filed by the appellant against the order dated 16.01.2019 passed by the Adjudicating Authority in Original Complaint No. 1015/2018 (OC), whereby the properties attached by ED vide Provisional Attachment Order No.11/2018 dated 31.07.2018 were confirmed. The properties of the appellant are mentioned in para no.1 of the impugned order from page no. 8 to14.

2. As per the facts of the case, an FIR was registered by CBI, BS & FC/

BLR on 24.03.2018 vide no. RC-08/E/2018 against the following persons:

i. M/s Nathella Sampath Jewelry Private Limited; ii. Shri N. Ranganath Gupta, Promoter cum Managing Director; iii. Shri N. Prasanna Kumar, Director; iv. Shri N. Prapanna Kumar, Director; v. Shri Sohun C.J., Partner of M/s Jeervla & Co., Chartered Accountant, Kilpauk Chennai & Statutory Auditor of M/s Nathella Sampath Jewelry Pvt. Ltd. and unknown public servants and unknown others for commission of offence under section 120B IPC read with section 409, 420, 467, 468, 471 IPC and also r.w.s. 13(2) r.w.

13(1)(d) of Prevention of Corruption Act, 2008 and the substantive offences thereunder.

As per the allegations in the FIR, the accused persons in pursuance to conspiracy committed the offence in collusion with officials/officers of the non-banking finance company. M/s Nathella Sampath Jewelry Pvt. Ltd. (NSJPL) was engaged in the business of buying, manufacturing and selling of precious metals in the form of medallion, jewellery (Gold, Silver & Diamond) and other accessories. Shri N. Rangnath Gupta, N. Prasanna Kumar and N. Prapanna Kumar (both sons of Shri N. Rangnath Gupta) are the key persons involved in the affairs of M/s NSJPL in the status of its Promoter cum Managing Director & Promoter cum Directors respectively. M/s NSJPL was incorporated on 03.04.2007 by taking over three existing partnership firms viz. Nathella Sampath Jewelry; NSC & Co.; and M/s NSC Jewellers. M/s Jeeravla & Co. represented by its partner Shri Sohum C.J. are the statutory auditors of M/s NSJPL. M/s NSJPL was enjoying financial assistance in the form of working capital credit limits with IOB, ICICI, HDFC and Citi Bank to the tune of Rs. 71 Crores. During 2009, SBI took over the said loans by sanctioning Rs. 100 Crores to M/s NSJPL. The exposure of SBI was reduced from Rs. 100 Crores to Rs. 70 Crores during January, 2010 within an overall limit of Rs. 112 Crores (the balance exposure of Rs. 42 crores from HDFC). The limits of SBI subsequently increased during the period from 2010 to 2012 to Rs. 210 Crores. In February, 2013, the erstwhile State Bank of Travancore (e-SBT) sanctioned a limit of Rs. 40 Crores and thus the overall credit limits were Rs. 305 Crores (SBI 210 Crores, e-SBT 40 Crores & HDFC – Rs. 55 Crores) and all the banks were brought under consortium agreement with SBI being the lead bank. In 2015, Union Bank of India was inducted into the consortium and the said bank sanctioned a limit of Rs. 50 Crores. Further financial facilities viz. option to avail CC (Hyp)/Metal Gold Loan were also permitted and M/s NSJPL purchased Gold in the form of Bullion either from the nominated banks in the consortium or in the Open Market by utilizing the limits and M/s NSJPL also purchased Bullion on the basis of BG issued by the consortium banks. As on 31.03.2017, three banks viz. SBI, HDFC and Union Bank of India were consortium members and the limits ava