Disposed

FPA-PMLA-1083/DLI/2015 of Sowbhagya Media Ltd. v/s The Deputy Director Directorate of Enforcement, Delhi

ATFP16 Dec 2016FPA-PMLA-1083/DLI/2015

Case brief

AI extract

What is this about?

The Tribunal disposed of an application to release attached properties. It directed the appellant to deposit Rs. 1.50 crores without prejudice to the appeal's outcome, subject to which movable and immovable properties would be released forthwith.

What did the court decide?

Deposit of Rs. 1.50 crores by way of fixed deposit to release movable and immovable properties in list (a), (b), and (d).

FPA-PMLA-1083/DLI/2015 of Sowbhagya Media Ltd. v/s The Deputy… — Money Laundering | ATFP (2016)

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APPELLATE TRIBUNAL, PREVENTION OF MONEY LAUNDERING ACT AT NEW DELHI

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MP-PMLA-2123/DLI/2015 MP-PMLA-2877/DLI/2016 (COD) MP-PMLA-2538/DLI/2016 (Recall of Order) MP-PMLA-2117/DLI/2015 (Stay) FPA-PMLA-1083/DLI/2015

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Sowbhagya Media Ltd. … Applicant/Appellant Versus The Deputy Director Directorate of Enforcement, Delhi … Respondent

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… Respondent

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Advocates/Authorized Representatives who appeared

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For the appellant	: Shri M.R. Venkatesh, C.A. Shri Abhishek Kumar Pandey & Shri R. Sivaraman, Advocates
For the respondent	: Shri N.K. Matta, Advocate
CORAM
JUSTICE MANMOHAN SINGH	: CHAIRMAN
SHRI G.C. MISHRA	: MEMBER
SHRI B.K. BANSAL	: MEMBER

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ORDER 16.12.2016

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MP-PMLA-2538/DLI/2016 (Recall of Order), MP-PMLA-2117/DLI/2015 (Stay)

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(1) In view of the earlier orders the MP-PMLA-2538/DLI/2016 (Recall of Order) and MP-PMLA-2117/DLI/2015 (Stay) have already been disposed off. Therefore, these applications may not be listed.

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MP-PMLA-2877/DLI/2016 (COD)

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(2) This is an application for condonation of delay for bring on record additional affidavit in support of the application for stay. The notice has already been issued. Reply of this application has already been filed.

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MP-PMLA-2123/DLI/2015

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(3) We proposed to decide the pending application for swap filed by the appellant praying to discharge the attached property of M/s Siri Media and to swap the same with existing fixed deposit to the tune of Rs. 32

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FPA-PMLA-1083/DLI/2015

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Page 1 of 7

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lakhs in UCO Bank in the name of the appellant. The application for Swap is as follows:

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The present appeal has been filed against the order of confirmation dated 19.08.2015 confirming the Provisional Attachment Order No. 12/2015 dated 30.03.2015 in ECIR No. DLZO/12/2014/AD passed by the respondent, whereby the Ld. Adjudicating Authority had confirmed the provisional attachment order passed against the appellant who submits that the impugned order of the Learned Adjudicating Authority in Original Complaint No. 487/2015 dated 19.08.2015 arising out of Provisional Attachment Order No. 12/2015 dated 30.03.2015 in ECIR No. DLZO/12/2014/AD(VM) confirming the provisional attachment is erroneous, arbitrary contrary to law, devoid of any merits and liable to be set aside.

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The Adjudicating Authority had attached properties as according to it the same are in money laundering and that the appellant is in possession of proceeds of crime or value thereof namely the following are the details:-

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“(a) Benz bearing Registration no. AP 09 BR 1111 purchased on 30.08.2008 for Rs. 98,23,085/- belonging to M/s Sowbhagya Media Ltd. (“Benz Car”).

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(b) Land Cruiser bearing Registration No. AP 09 BP 1111 purchased on 12.11.2008 for Rs. 20,00,000/- belonging to M/s Sowbhagya Media Ltd. (“Land Cruiser”)

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(c ) Fixed Deposit of Rs. 50 lakhs along with its maturity value/interest, which is on 17.03.2015 is Rs. 61,99,682/with Vijaya Bank, Jubilee Hills Branch in A/c No.

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FPA-PMLA-1083/DLI/2015

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Page 2 of 7

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408403311000868 of M/s Sowbhagya Media Ltd. (“Fixed Deposit”)

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(d) Land admeasuring 8,000 square yards out of total land extent of 6 acres 10 guntas in Survey NO. 320/1 and 315/3 situated at Chandanagar Village, Serillingampalli belonging to Siri Media Pvt. Ltd. to the extent of Rs. 31,76,915/- being the remaining value of proceeds of crime.”

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It is stated by the appellant that infact the appellant had in fact approached the respondent to swap the land measuring 8000 sq. yards belonging to Siri Media with an existing fixed deposit to the tune of Rs. 32 lakhs in the name of this Appellant lying in UCO Bank. However, the respondent as well as the Ld. Adjudicating Authority did not consider such a request and dismissed the same.

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The appellant submits that in pursuance to the impugned order dated 19.08.2015 of the Adjudicating Authority confirming the provisional attachment arising out of Provisional Attachment Order NO. 12/2015 dated 30.03.2015 in ECIR No. DLZO/12/2014/AD(VM), the Enforcement Directorate Department will take necessary steps to permanently attach the above-mentioned properties thereby inflicting great hardship upon this appellant in case the relief sought is not granted.

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In support of his submission the learned counsel appearing on behalf of the appellant has referred the impugned order passed by the Adjudicating Authority. The same is reproduced as under:

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FPA-PMLA-1083/DLI/2015

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Page 3 of 7

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S.No.	Defendants Submissions	Complainant Submissions
(m)	Sowbhagya Media further requests	In this case, immovable
	this Learned Authority to release	property of M/s Siri Media
	the provisional attachment on the	Pvt. Ltd., bearing land
	property of M/s Siri Media Pvt. Ltd.	admeasuring 8,000 sq.
	Assuming, but not accepting that	yard has been attached to
	the amount of Rs. 2 crores are	the extent of Rs.
	relating to „proceeds of crime‟, Siri	31,76,915/-. Since, all the
	Media is only the parent company of	defendants are agreed for
	Sowbhagya Media and both are two	replacement of aforesaid
	separate entities. In this regard,	property by a fixed deposit
	both Siri Media and Sowbhagya	of Rs. 32 lakh of Sowbhaya
	Media have preferred an application	Media Ltd with UCO Bank
	dated 17.06.2015 to „The	and also filed an
	Chairperson, Adjudicating Authority	application dated
	of India‟ to discharge the said	17.06.2015, it is the
	attached property belonging to Siri	Hon‟ble Adjudicating
	Media and to replace the same with existing fixed deposit to the tune of	Authority to decide fate of aforesaid application of the
	Rs. 32 lakhs in UCO Bank in the name of M/s Sowbhagya Media Ltd. Thus, the Learned Authority may be pleased to discharge the attached	defendants.
	property of M/s Siri Media to the
	tune of Rs. 31,76,915/- as part of
	the remaining value of the proceeds of crime.

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FPA-PMLA-1083/DLI/2015 Page 4 of 7

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The learned counsel for the appellant at the start of hearing of the application submits that the appellant is ready to deposit Rs. 32 lakhs by way of fixed deposit with the respondent. The said amount is already with UCO Bank. He further submits that as per the case of the respondent the attached properties are involved in money laundering as in proceeds of crime, the total value is Rs. 2 crores and incase Rs. 32 lakhs is deposited with the respondent against the property belong to Siri Media Pvt. Ltd. the said amount will cover the remaining value of the proceeds of crime totaling the sum of Rs. 2 crores.

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The prayer of the application is opposed by the respondent who submits that there are consequent circumstances which would establish the case of the appellant is that one of the accused is ready to become the approver in the case pending against the appellant in the criminal complaint filed in scheduled offence. However, it is not disputed by the counsel for the respondent in the present case that the attachment of the property as per the case of the respondent on the basis of the money laundering is totaling to the tune of Rs. 2 crores.

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The counsel for the respondent submitted that two vehicles which were attached and the value of two vehicles is decreased therefore the said amount of Rs. 1,18,23,085/- cannot be considered as the value of the said vehicles as of today, therefore, the depositing of Rs. 32 lakhs only would not cover the remaining amount of the proceeds of crime. The learned counsel for the appellant submits that as far as the land of 8,000 square yards attached as per item (d) is concerned the value of the said land is Rs 4 to 5 crores as of today and there is a development agreement

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FPA-PMLA-1083/DLI/2015 Page 5 of 7

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between the Siri Media Pvt. Ltd. and M/s Anuradha Meadows Private Ltd. therefore in case relief is not granted, the appellant will suffer irreparable loss and injury.

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Even after small hearing he has given the suggestion that as far as fixed deposit of Rs. 50 lakhs as referred in item no. (c) of the attached property, the said fixed deposit has already been attached by the respondent and without prejudice and in order to demolish the arguments of the respondent with regard to the present price of the two vehicles the sum of Rs. 1.50 crores shall be deposited with the respondent without prejudice so that the attached property (a), (b), & (d) be released from the attachment in view of the Rule 5 sub rule (5) of Prevention of Money Laundering (Taking Possession of Attached Or Frozen properties confirmed by the Adjudicating Authority) Rules, 2013 is read as under:

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“Where the immovable property confirmed by the Adjudicating Authority is in the form of a land, building, house, flat etc., and is under joint ownership, the authorized officer may accept the equivalent value of fixed deposit to the extent of the value of the share of the concerned person in the property estimated by the authorized officer, to be involved in money laundering”

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As far as subsequent events as alleged by the counsel for the respondent is concerned as and when the such circumstances are arisen, the respondent is granted to bring on record the facts and circumstances.

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FPA-PMLA-1083/DLI/2015

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Page 6 of 7

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At present stage, we are inclined to accept the contention of the appellant counsel as no issues is cause if the suggestion given is accepted at this stage. Under these circumstances the appellant is directed without prejudice the appellant shall deposit the sum of Rs. 1.50 crores by way of fixed deposit in the name of the respondent within four weeks from today who shall keep the said amount for the period of twelve months and the appellant will renew the same for further period of twelve months if the appeal is not decided within the time. Subject to deposit of said amount the movable and immovable properties in the list on (a), (b) & (d) stands release forthwith. It is clarified that the said deposit without prejudice subject to the final outcome of the appeal. The application is accordingly disposed off.

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