FINAL ORDER

17.12.2024

Dictated by: Rajesh Malhotra

Present appeals at S.No. 1 to 4 are filed by appellants under Section 26 of Prevention of Money Laundering Act, 2002 (PMLA), against the order dated 08.06.2018 passed in Original Complaint No. 872/2018, whereby the Adjudicating Authority confirmed the Provisional Attachment Order (PAO) No.04/2017 dated 22.12.2017 and thereby the following properties of the appellants mentioned in Table-I & Table-II were confirmed:-

Another appeal at S.No. 5 is filed by appellant Mandeep Singh under Section 26 of PMLA, 2002, against the order dated 23.12.2020 passed in Original Complaint No. 1323/2020, whereby the Adjudicating Authority confirmed the PAO No.03/2020 dated 29.06.2020 and thereby the attachment of property SCO no.2, Sector-10D, Chandigarh, of the appellant Mandeep Singh was confirmed.

2. As per the facts of the case the Vigilance Bureau Flying Squad, Mohali, Punjab registered FIR No. 12 dated 26.08.2015 against Sh. Mandeep Singh, IAS, Secretary (Rtd.), Department of Public Grievances Redressal and Pension Welfare, Punjab under Section 13 (1) (e) r/w Section 13(2) of the Prevention of Corruption Act, 1988 and under Section 120-B of IPC for possession of disproportionate assets to his known sources of income. The said FIR was registered on the basis of Preliminary Enquiry conducted by the Vigilance Bureau against him. After investigation, the Vigilance Bureau filed the police report under Section 173 Cr.P.C. on 01.03.2017 under Section 13 (1) (e) r/w Section 13 (2) of PC Act, 1988, & 120B IPC r/w Section 420, 467, 468, 471 of IPC, before the Sessions Court, S.A.S. Nagar, Mohali, Punjab.

As per the police investigation, during the check period from 01.04.1998 to 31.03.2014, Sh. Mandeep Singh and his family members have earned total income of Rs.4,13,86,471/- from all declared lawful sources of income, but have spent sum of Rs.9,55,07,490/- and accordingly, he spent Rs. 5,41,21,019/- in excess (130% excess), of all sources of income. This expenditure includes Rs.3,01,24,555/- spent on purchase of agricultural lands in the name of his wife & sons. He also spent crores of rupees gathered through corrupt means in Ashiana Inn Ltd. And Hotel Marc Royale, situated at Dhakoli, Zirakpur, in connivance with Sh. Avtar Singh and his father Sh. Naginder Singh (since deceased). Sh. Mandeep Singh also got executed a WILL by his father Sh. Naginder Singh in his favour.

During the investigation of the said case by Vigilance Bureau, Punjab, the information was sent to Enforcement Directorate and accordingly ED registered the ECIR/JLZO/01/2016 on 18.02.2016 for conducting investigation under Prevention of Money Laundering Act, 2002, as the said offences were covered under the Scheduled Offences. During the investigation respondent ED recorded the statement of the suspects and other persons under Section 50 of PMLA as mentioned in details in para 4 of the impugned order.

On the basis of material collected during the investigation under PMLA, Deputy Director, ED, as mentioned in para no. 5 of the impugned order, it attached the agriculture lands valued at Rs. 2,62,46,148/- (as mentioned in table I of para 1 above). The Deputy Director further formed a reasonable belief that M/s. Ashiana Inn Ltd. (D-1) Dhakoli, Zirakpur, has constructed two Hotels Marc Royale-I and Marc Royale-II, situated at Dhakoli, (as mentioned in table II of para 1 above) currently in possession of Punjab & Sind Bank, Sector-17, Chandigarh, against loans given to the said company. Deputy Director reasonably believed that said hotels were constructed by illegitimate funds possessed by Sh. Mandeep Singh, IAS (now Retd.) (D-5), in excess of known sources of his income, in connivance with Sh. Avtar Singh (D-9) S/o Sh. Sarwan Singh. He further reasonably believed that proceeds of crime generated by Sh. Avtar Singh (D-9) S/o Sh. Sarwan Singh, by defrauding the aforesaid bank by diverting loan funds to the shell companies/entities, have also been