FINAL ORDER

22.12.2025

These three appeals have been preferred under section 26 of the Prevention of Money Laundering Act, 2002 against the order passed by the Adjudicating Authority in Original Complaint No.525/2015 dated 24.02.2016, whereby Provisional Attachment Order No. 03/2015 dated 23.09.2015 passed in ECIRs No. 02/PMLA/LZO/2012, 03/PMLA/ LZO/2012 and 08/PMLA/LZO/2012 (all dated 14.04.2012) was confirmed by the said Authority.

Facts in Brief

2. The factual context of these cases is the same as in the cases of Sh. Sourabh Jain and Smt. Rajni Jain (FPA-PMLA-1283/LKW/2016 and FPA- PMLA-1282/LKW/2016, respectively) which were disposed of by this Appellate Tribunal vide a common order dated 21.11.2024. The relevant facts, briefly, are that three FIRs, namely, FIR No. RC-02(A)/2012-CBI/SC- II/NDLS dated 02.01.2012, FIR No. RC-03(A)/2012/CBI/SC-II/NDLS dated 02.01.2012, and FIR No. RC2202012E0003 dated 18.01.2012, were registered by CBI, New Delhi in compliance with order dated 15.11.2011 passed by the Hon’ble Allahabad High Court (Lucknow Bench) in Writ Petition No. 3611(MB) of 2011(PIL) and connected Writ Petition No. 2647(MB) of 2011(PIL). The allegations in the said FIRs were in relation to alleged misuse of funds allocated under National Rural Health Mission (NRHM) Scheme in the State of Uttar Pradesh (U.P.) during the period 2010-11. It was alleged that the accused persons had entered into a conspiracy to defraud government funds allocated under NRHM Scheme so as to derive illegal gains.

3. Since the alleged offences mentioned in the FIRs, namely, Section120-B read with Sections 420, 465, 468, 471 of the IPC, and section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 (P.C. Act, 1988) constituted “scheduled offences” under the Prevention of Money Laundering Act, 2002 (PMLA), and “proceeds of crime” as defined under the said Act appeared to have been utilised by the accused persons for acquisition of various movable/immovable properties and projected as untainted, investigations under the provisions of PMLA, 2002 were initiated by the Directorate of Enforcement (ED) vide ECIR No. 02/PMLA/LZO/2012, ECIR/03/PMLA/LZO/2012 and ECIR/08/PMLA/LZO/ 2012, all dated 14.04.2012.

4. Investigations carried out, inter alia, revealed gross irregularities in award of contracts for the supply of IUD Kits, MVA Syringe, surgical bathroom scales, salt testing kits, infection prevention consumables for IUD services, NSV kits and Glutaraldehyde solutions (2%) etc. Contracts were illegally rigged to favour of various business entities belonging to Sh. Saurabh Jain and his close relatives, including his wife Smt. Rajni Jain and his cousin Sh. Vivek Jain. Sub-standard and mis-branded materials were supplied by the said entities at exorbitant rates, thereby, causing undue gain to them and corresponding loss to the Govt. It also emerged that Sh. Saurabh Jain was a close confidant of Sh. Babu Singh Kushwaha, a Minister in the then Government of U.P., and was acting on his behest for generation and parking of proceeds of crime in connivance with Dr. S.P. Ram, the then DG, Family Welfare, Govt. of UP, and Sh. Sanjiv Kumar, the then Area Manager, UP Small-Scale Industries Corporation, Kanpur.

5. So far as the three appellant companies herein are concerned, namely, M/s Shivali Constructions Pvt. Ltd., M/s Renu Constructions Pvt. Ltd., and M/s BA Properties Pvt. Ltd., the allegation is that substantial proceeds of crime were invested to acquire shareholding and management control of three companies in the names of Sh. Saurabh Jain and Smt. Rajni Jain. It is alleged that proceeds of crime to the tune of Rs. 74 lakh was withdrawn and received in cash by Sh. Saurabh Jain out of the bank account of M/s Kapil Medical Agencies (proprietorship concern of Sh. Vivek Jain, cousin of Sh. Saurabh Jain). Further, proceeds of crime to the tune of Rs. 513.75 lakh parked in the bank account of M/s Siddhi Traders (proprietorship concern of Smt. Rajni Jain w/o