Allowed

FPA-9/BOM/2014 of Sanjay N. Waghmare v/s The Competent Authority, Mumbai

ATFP20 Jul 2018FPA-9/BOM/2014

Case brief

AI extract

What is this about?

Appellants challenged property forfeiture under SAFEMA. The appellate tribunal allowed the appeal by remanding the matter to the adjudicating authority to examine loan declarations and ensure a proper inquiry before reaching a clear-cut finding.

What did the court decide?

Remand of the matter to the adjudicating authority to examine declarations, undertake inquiry, and grant opportunity of hearing before deciding afresh within six months.

FPA-9/BOM/2014 of Sanjay N. Waghmare v/s The Competent… — Banking and Recovery | ATFP (2018)

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APPELLATE TRIBUNAL FOR SAFEMA, FEMA, NDPS, PMLA & PBPT ACT AT NEW DELHI

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DATE OF DECISION: 20 .07.2018

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MP-49/BOM/2014 (S.P.) & FPA-9/BOM/2014 Sanjay N. Waghmare … Appellant & MP-50/BOM/2014 (S.P.) & FPA-10/BOM/2014 Reshma S. Waghmare … Appellant Versus The Competent Authority, Mumbai … Respondent

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Advocates/Authorized Representatives who appeared

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For the appellant	: Shri G.B. Yadav, Advocate
For the respondent	: Shri Stanley Joseph, Inspecting Officer
CORAM
SMT. ANANYA RAY	: MEMBER

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JUDGEMENT

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FPA-FE-9 & 10/BOM/2004

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Appeals have been filed by the appellants in the above two appeals against the order of the Competent Authority No. 02/SAFEMA/MUM/2014 dated 08.08.2014. Shri Sanjay Nimruti Waghmare was detained under COFEPOSA in 2011. Smt. Reshma S. Waghmare is the wife of Shri Sanjay N. Waghmare and therefore his relative as defined under Section 2 (2) (c) of

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FPA-9 & 10/BOM/2014

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Page 1 of 3

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the SAFEMA. Vide the above order dated 08.08.2014, two properties held jointly by the husband and wife were forfeited to the Central Government and the ground was that they were unable to produce any evidence to show that the properties as specified in the show cause notice served under Section 6, were legally acquired properties.

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In the appeal, the appellants main plea has been that the total value of the property was to the tune of Rs. 32,93,960/- including stamp duty and registration charges, out of which Rs. 5,40,000/- was paid through bank and the rest was paid in cash during the period February, 2007 to September, 2008. For this they had also taken loans from relatives and friends during the above mentioned period. They had submitted declarations from the individuals who had given loans, before the adjudicating authority. They also stated that this is also reflected in their balance sheet of the company M/s. Yash Clearing & Forwarding Agency which is the proprietorship of Mr. Sanjay N. Waghmare, which proves that the properties were purchased through legal sources of his income/money.

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I have gone through the records and also heard both the parties. That the declarations of the relatives/friends were placed before the adjudicating authority wherein they have given the said loan to the appellants, is recorded in the adjudication order of the Competent Authority. He has however summarily rejected them without going into the details or further investigating those documents. In case he had any doubt he had the liberty to call for further details/evidence in support of the same from the appellants which does not seem to have been done. Since they are the main evidence on which the appellants have based their case, the same should have been dealt with, alongwith clear cut findings.

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FPA-9 & 10/BOM/2014

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Page 2 of 3

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I am therefore inclined to remand this matter back to the adjudicating authority to examine all the declarations and undertake whatever inquiry/investigation required and come to a clear cut findings on these declarations. He may also give an opportunity to the appellants before the matter is decided afresh. This whole exercise may be completed within a period of six months.

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On the basis of above, the appeals are allowed by way of remand.

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(Ananya Ray) Member

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New Delhi, 20^th July, 2018 ‘A’

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FPA-9 & 10/BOM/2014

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Page 3 of 3

FPA-9/BOM/2014 of Sanjay N. Waghmare v/s The Competent Authority, Mumbai

Case brief

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FPA-9/BOM/2014 of Sanjay N. Waghmare v/s The Competent Authority, Mumbai

Case brief

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