FINAL ORDER

03.04.2024 Present appeal u/s 26 of Prevention of Money Laundering Act, 2002 is filed by appellant Rahul Saraff/Defendant No. 2 against impugned order dated 11.06.2018 passed by Learned Adjudicating Authority in Original Complaint No. 878/2018, vide which the property attached by Respondent-ED vide PAO dated 29.12.2017 was confirmed, which is detailed as under:

2. As per the facts of the case, letter dated 8.06.2011 was received from the Superintendent of Police, CBI, BS&FC, Kolkata regarding registration of regular case vide RCBSK2009E0004 dated 27.03.2009 on the basis of complaint filed by Shri B.N.S. Ratnakar, General Manager, Zonal Office, Central Bank of India, Kolkata against Shri Ashok Kumar Gupta, Shri Vivek Gupta, Directors of M/s. Kali International Pvt. Ltd. and Shri R.S. Sahoo, the then AGM, Central Bank of India, Burrabazar Branch, Kolkata and Shri K.N. Mondal, the then Senior Manager in the said branch for commission of offences u/s 120B IPC r/w 420, 409, 468, 471, 477-A IPC and also r/w Section 13(2) r/w 13(1)(c) & (d) of Prevention of Corruption Act, 1988 and substantive offences thereunder, in respect of the alleged fraudulent transactions through CC Account of M/s. Kali International Pvt. Ltd. and thereby caused a wrongful loss to the Central Bank of India to the tune of Rs. 72.44 Cr as on 28.02.2009.

Another FIR vide Regular Case No. RCBSK2009E005 dated

27.03.2009 was also registered on the basis of another complaint filed by Shri B.N.S. Ratnakar, General Manager, Zonal Office, Central Bank of India, Kolkata against Shri Ashok Kumar Gupta, Rajendra Kumar Gupta, Ramesh Kumar Gupta, Smt. Imerti Devi Gupta, partners of M/s. Rajco Steel Enterprises and Shri R.S. Sahoo, the then AGM, Central Bank of India, Burrabazar Branch, Kolkata and Shri K.N. Mondal, the then Senior Manager, Central Bank of India, Burrabazar Branch, Kolkata u/s 120B IPC r/w 420, 409, 468, 471, 477-A IPC and also r/w section 13(2) r/w 13(1)(c) & (d) of Prevention of Corruption Act, 1988 in respect of the alleged fraudulent transactions through the CC Account of M/s. Rajco Steel Enterprises which caused a wrongful loss to Central Bank of India, Burrabazar Branch to the tune of Rs. 65.93 Crores as on 28.02.2009. After completion of investigation, Central Bureau of Investigation filed combined charge-sheet with respect to both the FIRs against the accused persons. As per police case, it is revealed that many fraudulent transactions of kite flying operations; withdrawal of funds against the unclear effects of all accommodative cheques; and diversion of funds thereof was committed through CC Accounts of M/s. Kali International Pvt. Ltd. and M/s. Rajco Steel Enterprises by the accused person in pursuance to conspiracy. M/s. Kali International Pvt. Ltd. was availing capital credit limit from Central Bank of India since 12.12.2000 aggregating to Rs. 215 lakhs. The limit was subsequently enhanced periodically and last revised to 2.80 Crore on 15.11.2007 for CC (Hypothecation), Rs. 80 lakhs for ODBD, Rs. 9 Crores for WCDC, Rs. 2.40 Crore for packing credit and Rs. 6 lakhs for non-fund base limit, total aggregating to Rs. 15.06 Crore.

M/s Rajco Steel Enterprises was availing working capital credit limit from Central Bank of India since 04.07.1998. The initial sanction CC limit was Rs. 49.50 lakhs and ODBD limit of Rs. 30 lakhs, total amounting to Rs. 79.50 lakhs. The said credit limit was renewed and enhanced periodically and vide sanction letter dated 15.11.2007, CC limit was enhanced to 160 lakh and ODBD limit was enhanced to Rs. 90 lakhs total ag