ORDER

15.12.2023

FPA-PMLA-2925 to 2940/MUM/2019

The batch of appeals have been filed under section 26 of the Prevention of Money Laundering Act, 2002 (in short the Act of 2002) to challenge the order dated 27/12/2014 passed by the Adjudicating Authority confirming the provisional attachment order.

2. Brief facts of the case:-

It is a case where a complaint was registered on 30.12.2013 against M/s Birla Power Solution Limited and its Directors namely:-

3. After registration of FIR, an ECIR was recorded on 17.01.2014. The FIR was registered on 30.12.2013. The EOW, Mumbai Unit filed charge sheet on 29.3. 2014 in MPID Court against P.V.R. Murthy followed by supplementary charge sheet on 28.10.2016 against the individuals and Birla Power Solutions Limited. It was also against M/s Zenith Birla (India) Limited, Birla Cotsyn (India) Limited and Sholka Eductech, M/s Birla Edutech Ltd. for the offence under section 420, 406, 477 (A) and 120 (B) of Indian Penal Code (IPC), 1860 and section 3 and 4 of MPID Act, 1999.

4. It was alleged that accused company M/s Birla Power Solution Limited and their group entities issued an advertisement to invite fixed deposits on an attractive interest. The accused in coalition with each other had accepted the amount of more than 260 crores from around 20,000 victims/ investors in Birla Power Solution Limited, Birla Shlok Edutech Ltd., Zenith Birla (India) Limited and Birla Cotsyn (India) Limited. After maturity of the amount, the companies failed rather refused to return the amount deposited with it and accordingly an amount of 57.04 crore and Rs. 214 crores remains unpaid towards Fixed Deposit and ICD depositors.

5. During the course of Investigation, the statement of the complainant/ investors were recorded. One Hemant V. Mehta stated that intercorporate deposit payment of Rs. 2.5 crores was made by his Company M/s Kunal Corporation to M/s Birla Power Solution Limited through the financial broker Mr. Bagadia.

6. Initially amount was paid from time to time but it was stopped later on. No interest was received on due dates and even cheques given for repayment were not honoured by the bank and accordingly he filed a complaint before the Police. Sh. Vikram Rathore, the another complainant has made the same allegation but in addition to it he stated that Mr. Yash Birla and P.V.R. Murthy gave them a rosy picture to attract the investment on higher rate of interest. The complainant apart from many invested their hard earned money but the amount deposited by them remained unpaid. Thus, they filed a complaint. The statement of other investors were also recorded. They made reference of 163 investors filed the complaint against Birla Power Solution Limited and its Director. In the investigation, it was found that the money collected from the investors was siphoned off and laundered by transfer to other companies and mainly the entities of Birla Power Solution Limited.

7. The statement of the accused were also recorded who submitted that the investment were invited to expand the business and to cover the shortage of capital. The deposits so received from the investors was transferred to the group of companies which includes M/s Birla Surya Limited which alleged to have siphoned of the money thus, an offence of money laundering was found.

8. The respondent finding a case of money laundering sought to attach the properties to safeguard the interest of the investors during the pendency of the criminal case. They accordingly attached several properties of M/s Birla Surya Private Limited to whom the money was transferred by Birla Power Solution Ltd and its Directors. It was to secure the proceeds of crime so transferred to M/s Birla Surya Ltd. The appellant had transferred money to different group of companies. It was even on short term basis. The transactions were noted in the board of meeting. However, due to critical condition of the company, the amount could not be repaid with interest. It has also come that entire fund recei