ORDER

15.01.2025

The present appeals arise from the order dated 27.10.2016 passed by the Ld. Adjudicating Authority (AA) under the Prevention of Money Laundering Act, 2002 (PMLA, 2002) in Original Complaint (O.C) No. 606/2016 confirming the Provisional Attachment Order (PAO) dated 11.05.2016 passed in ECIR/12/DL20/2015.

Facts in Brief

2. The relevant facts as recorded in the impugned order briefly are that on the complaint of Deputy Director, Directorate of Revenue Intelligence (DRI), Lucknow Zonal Office, a case vide FIR No. 76 dated 18.01.2015 was registered at P.S. Kavi Nagar, District Ghaziabad. (U.P.) under sections 420, 467, 468, 471 & 469 of the erstwhile Indian Penal Code (IPC) against one Shri Manish Jain and others wherein it was alleged that during a search conducted by the DRI under the Customs Act, 1962, it was found that Shri Manish Jain, R-12/40, Raj Nagar, Ghaziabad, was involved in making illegal foreign remittances to Hong Kong through banking channels by submitting fake import documents to bank authorities. As per the report, Sh. Manish Jain and others operated through various fictitious firms/companies and remitted more than Rs. 380 crores to Hong Kong from India during the period 2007-2011, showing the same as payment for import of computer parts and accessories. On further investigation by the DRI, it was revealed that Manish Jain and others had been remitting foreign exchange to Hong Kong through bogus firms/companies, namely, M/s Suntek Computers and M/s Shyam Trading Company (controlled by Sh. Manish Jain) adopting the same modus operandi and had remitted an amount of over Rs. 100 crores from 2012 till 2014. The DRI searched the residential and business premises of Sh. Manish Jain and associates on 07.08.2014 and seized incriminating material in the form of a large number of blank postal wrappers of Hong Kong Post, large number of bogus PAN cards (about 150) and Voter ID Cards (about 100) in the names of different fictitious identities. To accomplish this criminal activity of remitting foreign exchange from India, Sh. Manish Kumar Jain had opened a firm, namely, M/s Pacific Technology in Hong Kong, besides other entities.

3. Since offences under sections 420, 467, 471 of the IPC are the Scheduled Offences under the Prevention of Money Laundering Act, 2002 (PMLA, 2002), an ECIR (ECIR/03/LKZO/2015 dated 10.08.2015) was registered in the Lucknow Zonal Office of the Directorate of Enforcement, Lucknow, which was transferred to Delhi Zonal Office and re-numbered as ECIR No. 21/DLZO/2015 dated 01.12.2015.

4. Investigation carried out by the Respondent Directorate under PMLA, 2002 revealed that Sh. Manish Jain, in connivance with other co- accused persons, had set up various fake entities in the names of non- existent persons by forging the IDs and opened accounts in various banks for the purpose of depositing cash and, thereafter, transferred the same to the accounts of other such created entities from where the proceeds of crime were laundered by sending outside India under the garb of import advance by using fake documents. This conclusion was fortified with the recovery of fake voter ID cards where photograph of one person has been reflected on various voter ID cards with different names. The said proceeds of crime were further transferred to the accounts of other companies in Hong Kong, China etc. for utilization and facilitating the various importers/exporters who were involved in fraudulent import/export. It was admitted by Sh. Manish Jain, Sh. Rajeev Wadhwa and their other associates in their statements recorded under section 50 of the PMLA, 2002 and under section 108 of the Customs Act, 1962 that the entire business of the above stated entities was created by Manish Jain on the strength of fake IDs, and was being looked after by Manish Jain, Rakesh Jain etc. Thus, it was found that the above said accused persons, namely, Manish Jain, and his entities viz M/s Unique Enterprises, M/s Adinath Exim India, M/s