ORDER

05.12.2024

By the batch of appeals under Section 26 of the Prevention of Money Laundering Act, 2002 (in short “the Act of 2002”), a challenge has been made to the order dated 06.12.2021 passed by the Adjudicating Authority confirming the attachment of the properties belonging to the appellants.

2. It is a case where an FIR was registered on 18.01.2012 by the Central Bureau of Investigation (CBI), New Delhi for the offences under section 120-B read with Sections 409 and 420 of Indian Penal Code, 1860 and Section 13(2) and Section 13(1)(d) of the Prevention of Corruption Act, 1988. The Enforcement Case Information Report (ECIR) was then recorded by the respondent on 14.04.2012. It was followed by an investigation by the Directorate of Enforcement. The respondent then invoked section 5 of the Act of 2022 to attach the following properties of three appellants which are as under:

The allegations against the accused is for irregularities in utilization of Central Government funds under the National Rural Health Mission Scheme in the State of Uttar Pradesh during the years 2005 – 2011.

3. In the complaint, it was alleged that from the year 2005 to 2011 the public officials including Shri Pradeep Kumar Shukla, Shri Abhay Kumar Bajpai and others colluded with private entities M/s Anod Pharma Pvt. Ltd; M/s Anod Plasma Spray Ltd; and M/s Sofgel Capsulation Pvt. Ltd for commission of crime.

4. The three firms named in the preceding para were awarded contracts for supply of RO Machinery and Civil work in the hospitals across the State of Uttar Pradesh for a sum of Rs.19.93 crores. The contracts were awarded at the rate higher than prevalent market price without adequate inquiry and in violation of the conditions of tender. This led to the misappropriation of the funds in conspiracy with government officials.

5. The CBI filed a charge-sheet on 26.08.2015 before the Special Judge, Anti-Corruption, CBI Ghaziabad. In the investigation it was revealed that the State Health Society was formed under National Rural Health Mission (NRHM) with three key bodies, namely, the Governing Body, the Executive Committee and State Programme Management Unit. Rs. 19.95 crores were allocated for RO water system and Rs. 2.68 crores for improvement of hospital facilities. It was awarded to M/s Anod Pharma Pvt. Ltd; M/s Anod Plasma Spray Ltd.; and M/s Sofgel Capsulation Pvt. Ltd of Kanpur.These contracts were granted at higher price in collusion with the public officials including the then Minister Shree Babu Singh Kushwaha. The then Minister demanded a bribe of 15% of the budget for various works including RO System. The estimate for RO system was prepared by UPSIC on the instructions of the then Minister by showing higher market rate and thereby quoted Rs. 7,45,000/- per unit towards estimate. The value of the equipment was only Rs. 3,19,590/- at the relevant time. The inflated rate remain unverified as the officials bypassed the procurement protocols and thereby nominated UPISC to execute the project despite lack of expertise. Even the tender process was ignored and recurring cost of the project was shifted on the Government. The CBI filed the charge-sheet finding evidences against the appellants and the respondent attached the properties to secure the proceeds of crime. It was found that the payment towards execution of contract was made in the accounts of M/s Sofgel Capsulation Pvt. Ltd. and it was then siphoned off by transfer to Mr. Rakesh Kumar Tandon and other group companies which were non-existent / bogus firms viz. M/s Jain Trading and Shyam Industrial Corporation, M/s Anod Pharma, Anod Plasma apart from M/s Sofgel C