FINAL ORDER

28.11.2024

This Order disposes of the Appeal No. FPA-PMLA-1870/KOL/2017filed by the Appellant M/s Pawanjay Steel And Power Ltd. &Anr., under Section 26 of the Prevention of Money Laundering Act, 2002 (PMLA). The Appeal has challenged the Order dated 26.05.2017 (Impugned Order) in Original Complaint (OC) No. 675/2017 in the Provisional Attachment Order (PAO) dated 27.12.2016 in ECIR KLZO/10/2015 dated 06.07.2015.

2. On the basis of reference of CVC vide its letter no. 012/COL/020/1716 dated 13.04.2012, CBI, New Delhi had registered FIR bearing no. RC 2019 2015 E007 dated 22.04.2005 against the Appellant and others. The allegation that the Appellant had misrepresented before the Ministry of Coal and Ministry of Steel so as to get allocation of North Dhadu Coal Block along with three other companies was investigated. The CBI had filed the chargesheet no. 18 of 2016 dated 31.08.2016 for the offences punishable under Sections 120B and 420 of IPC. Resultantly, the Enforcement Directorate filed the ECIR KLZO/10/2015 on 06.07.2015. As part of the investigations under PMLA, certain statements were recorded of various persons under Section 50 of PMLA. Shri Gyanchand Prasad Agarwal, Managing Director of the Appellant Company confirmed that the Ministry of Coal had allotted Coal Block to the company at North Dhadu on 13.01.2006. That the Company had no existing unit at Lohardaga at the time of his application for Coal Block allocation. They had yet to start coal mining at North Dhadu. His Company had 50 % share with Shri Ram Swarup Rungta and his family members. They had invested Rs. 1.62 Crores in North Dhadu Mining Company Ltd. for the development of Coal Block. They had also purchased land of around Rs. 70 Lakhs. The Company received Rs. 2,87,20,000/- by issuance of fresh share capital. He stated that Rungta Group had invested Rs. 1,56,35,000/- in the year 2008-09.

3. Shri Ram Swarup Rungta, who became Director of the Appellant Company admitted that he and his family had purchased 50 % shares of the Appellant Company. He also informed that he had deposited Rs. 1,13,40,000/- in the account of the Appellant Company in March 2009. On allocation of the Coal Block to four companies, a joint venture, namely, M/s North Dhadu Mining Company Pvt. Ltd. was formed. Shri Rungta confirmed that the shares of the Appellant Company were purchased after the allotment of Coal Block to the Appellant Company.

4. Shri Umesh Kumar Agarwal, the Director in the Appellant Company stated that the Company was incorporated in 2003 and no work was undertaken by it till the allotment of Coal Block on 13.01.2006.

5. On the basis of the investigations under PMLA, the Respondent Directorate issued the PAO provisionally attaching the movable and immovable propertiesvalued at Rs.1,03,62,266/- comprising of fixed deposit of Rs. 2,33,834/- in the bank account of the Appellant Company, balance of Rs. 32,01,557/- in the bank account of M/s North Dhadu Mining Company Pvt. Ltd. and plots of land in the name of the Appellant Company valued at Rs. 69,26,874/-. The Ld. Adjudicating Authority under the PMLA, vide the Impugned Order held that there is considerable evidence regarding generation of proceeds of crime by the commission of the scheduled offences and there is sufficient evidence of such proceeds of crime having been utilized by the Appellant. Accordingly, the Provisional Attachment Order was confirmed since the said properties were found to be involved in the money laundering.

6. The Court of Ld. Special Judge (PC Act) (CBI) Rouse Avenue, New Delhi passed a judgment on 13.11.2019, whereby it was held that the overall facts and circumstances of the case unerringly point out to one and only one hypothesis and which is consistent with the guilt of the accused persons only and also that the circumstances are not explainable on any other hypothesis, much less consistent with the innocence of the accused persons. The prosecution in the considered opinion of the Ld. Judge