FINAL ORDER

19.12.2024

This Order disposes of the Appeals No. FPA-PMLA-950-952/LKW/2015 filed by the Appellants, Shri Virendra Goyal, Shri Neeraj Upadhyay and Smt. Nidhi Upadhyay against the Orderdated 01.06.2015 (Impugned Order) of the Ld. Adjudicating Authority (AA) in Original Complaint (OC) No. 413/2015, wherein Provisional Attachment Order (PAO) No. 01/2015 dated 15.01.2015 was confirmed attaching the immovable/movable properties of the appellants herein.

2. The impugned order reveals that FIR no. RC/1(A)/2012/CBI/SCB/LKO dated 02.01.2012 under section 120B & 409 of IPC and 13(2) r/w 13(1)(d) of the Prevention of Corruption Act (PC, Act) was registered against Shri G.K. Batra, the then Managing Director M/s Shreetron India Ltd; Shri Neeraj Upadhyay, Proprietor of M/s Radhey Shyam Enterprise, Lucknow, Shri Virendra Goyal, proprietor of M/s Axis Marketing Ltd., New Delhi and Shri Avichal Mishra Executive of M/s HCL Infosystems Ltd., Lucknow by the CBI, SCB Lucknow in compliance with the Order dated 15.11.2011 passed by the Hon’ble High Court of judicature at Allahabad, Lucknow Bench, Lucknow in Writ Petition No:3611(MB) of 2011(PIL) and connected Writ Petition No. 2647(MB) of 2011(PIL). The allegations levelled were that the said persons entered in a criminalconspiracy and in furtherance thereof misappropriated an amount of Rs 2.94 crores approx. by showing undue favor to private firms.

3. Based on the aforementioned FIR, it appears that the Proceed of Crime (POC) i.e. tainted money amounting to Rs. 2.94 crore was earned by the accused persons by commission of criminal acts punishable under sections 120B, 420 & 471 of the IPC & section 13(2) r/w 13(1)(d) of the PC Act, which are covered as scheduled offences under para 1 and para 5 respectively of the erstwhile Part-B of the Schedule to Prevention of Money Laundering Act, 2002 (PMLA, 2002). Further, the said POC have been potentially utilized by the accused persons for acquisition of the movable/immovable assets and to project the same as untainted property which is an offence u/s 3 of the PMLA, 2002. Hence, investigation under PMLA, 2002 was initiated by the Directorate of Enforcement vide ECIR 05/PMLA/LZO/ 2012 dated 14.04.2012 with reference to the investigation of predicate offence initiated vide the said FIR.

4. The investigation conducted by the CBI revealed that the concept of the National Rural Health Mission (NRHM) was initiated by the Govt of India which aimed to provide accessible, affordable, effective and reliable healthcare to all citizens and in particular to the poorer and the vulnerable section of the population. In this regard, an amount of Rs.12 crore was earmarked for procurement of servers, computer system, printer, back-up power, etc. under operationalization of Health Management Information System (HMIS). In 2009- 10, Shri G.K. Batra, as Managing Director of M/s Shreetron India Ltd, a subsidiary of UP Electronics Corporation, abused his position to instruct the Principal Consultant (IT) of M/s Shreetron India Ltd. to submit a proposal for supplying computers and peripherals worth Rs. 11.64 crore to the Mission Director, State Programme Management Unit (SPMU), National Rural Health Mission (NRHM), Lucknow. In accordance with the instructions, the proposal was submitted even though no advertisement or order was placed by the SPMU, NHRM. The proposal was approved in the Executive Committee meeting by the then Mission Director, SPMU, NRHM, and the then Principal Secretary, Medical Health and Family Welfare, Govt of UP. Later on, a revised proposal amounting to Rs. 9,94,19,389/- was submitted after the approval of which a purchase order amounting to the said amount was placed on M/s Shreetron India Ltd. on 18.07.2009 for the supply of 951 desktop computers and its peripherals. An advance payment of Rs 8,44,27,000/- was made by SPMU, NRHM to M/s Shreetron India Limited even though there was no such provision for advance payment in the purchase order dated 18.07.