Dismissed

FPA-PMLA-2270/KOL/2018 of Chandra Sekhar Jaiswal v. The Joint Director Directorate of Enforcement, Kolkata

ATFP14 Jun 2024FPA-PMLA-2270/KOL/2018

Case brief

AI extract

What is this about?

Appeal against an order confirming the provisional attachment of funds lying in an account of a proprietorship firm involved in fake currency racket. The appeal was dismissed for want of merit as cash deposits and transfers lacked explanation of genuine business transactions.

What did the court decide?

The impugned order dated 16.03.2018 passed by the Adjudicating Authority confirming the provisional attachment order is upheld.

FPA-PMLA-2270/KOL/2018 of Chandra Sekhar Jaiswal Vs. The Joint Director… — Corruption | ATFP (2024)

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BEFORE RAJESH MALHOTRA, MEMBER; SINGLE BENCH: APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal

… Appellant

Versus

The Joint Director

Directorate of Enforcement, Kolkata … Respondent

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Advocates/Authorized Representatives who appeared

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For the Appellant : Mr. Ajay Garg, Adv. For the Respondent : Mr. N K Matta, Adv. Mr. Aaditya Raj Sharma, Adv

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FINAL ORDER 14.06.2024

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Present appeal under Section 26 of the Prevention of Money Laundering Act, 2002 is filed by appellant Chandra Sekhar Jaiswal proprietor of M/s Jaiswal Ispat Udyog, against the impugned order dated 16.03.2018 passed by the Adjudicating Authority in Original Complaint No. 834 of 2017 vide which Provisional Attachment Order dated 29.09.2017 passed by ED, Kolkata was confirmed and thereby, sum of Rs. 44,83,549/- lying in account No. 0082050002240 held in the name of M/s Jaiswal Ispat Udyog with United Bank of India, Manicktolla, Branch, Kolkata along with accrued interest thereon was confirmed for attachment.

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As per the facts of the case, FIR No. 06/2015 dated 27.02.2015 was registered against Chandra Sekhar Jaiswal, as he was arrested on 27.02.2015 with fake Indian Currency notes of Rs, 2,00,000/-. After his arrest, search was conducted at his residence situated at P- 54, CIT Scheme, VII-M (VIP Road), P.S Manicktolla, Kolkata. During search one bundle of both side printed sheets 3000 in number having both sides printed impression of Rs. 1000/- in 18 nos. per sheet; huge

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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number of printed impression of Indian Currency Notes in denomination of Rs. 1000/- and Rs. 500/- in several cartoons, huge number of printed impression of US Dollar, Turkish Currency, European Currency-Euro, Zimbabwean Dollars, Yugoslavian Currency (Dinnar) in several cartoons, two sealed polythene packets containing white coloured powder substances seven pieces of numbering machines, 27 pieces of metallic sticks having English alphabetical letter, 09 pieces of metallic stick having numerical figures, 100 pieces of printed sheet containing printed impressions of several Indian Postal each of Rs.5000/- and other articles were recovered and seized and accordingly, a seizure list was drawn on 02.03.2015.

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In consequences to the earlier search and also pursuant to the disclosure of Shri Chandra Sekhar Jaiswal (D-1), one Shri Md. Raj was called by the officers of STF and the said Md. Raj., Manager of Rathi Polymer Industry, 11 A, Umakant Lane, Kolkata-30 produced 04 offset printing machine plates made of aluminium sheet (said to be C.T.P plate) measuring about 27.5 inch by 21.5 inch having 10 impressions of either side of Rs. 1000/- and 08 impressions of either side of Rs. 500/- currency notes. The above said plates were also seized by the officers of STF and a seizure list was drawn on 10.03.2015.

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Search were again conducted by STF in the house of Shri Chandrasekhar Jaiswal (D-1) situated at ground floor of P-54, CIT Scheme VII-M, VIP Road, P.S- Maincktalla, Kolkata and one iron made paper cutting machine, 450 pieces of white paper one bunch of demand pay of Union Bank of India, 10 pieces of dongles of Airtel 4G, 13 pieces of SIM cards in Airtel, Tata Docomo & Idea, 04 offset

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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printing machine plate made of aluminium sheet said to be C.T.P plate measuring about 27.5 inch having 10 impressions of either side of Rs. 500/- currency notes with other articles were recovered and seized.

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Further one Shri Sukant Das, Owner of the Perfect Packagers produced 04 offset printing machine plate made of aluminium sheet said to be C.T.P plate measuring about 32.5 inch by 25.5 inch having 30 impressions of either side of different foreign currencies (US dollars, Euro, Yugoslavia, Turkey, Zimbabwe). These were produced by Shri Sukanta Das, as per the disclosure made by Shri Chandra Sekhar Jaiswal (D-1).

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During the course of custodial interrogation by STF, Shri Chandrasekhar Jaiswal (D-1) confessed in his statement dated 27.02.2015 and 02.03.2015 of having procured Rs. 2,00,000/- Fake Indian Currency Notes (FICN), (which was recovered from his possession at the time of his arrest on 27.02.2015) from one Malda based fake currency racketeer at a rate of Rs. 35,000/- per lakh. He further disclosed that he also managed to print fake notes from printing presses. After getting those printed Fake Currency Notes, he used alpha numeric bars to print the serial number on those notes so that those notes look like as genuine. Further he also disclosed that he prepared the security thread from extracting the same from shredded notes and paste it to the Fake Notes, so as the Fake Notes looks like the genuine which would be easily exchanged in the market. The huge number of sacks filled with the shredded Indian Currency Notes, were also recovered from the Factory/Godown of Shri BadreAlamSiddique at South Jhapardah, ONGC Road, P.S.-Domjur,

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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Howrah, which was acquired by Shri Chandrasekhar Jaiswal from one RBI contractor namely Patna Paper Agency and stored there for using it for pasting on the Fake Notes. Investigation also revealed that Shri Chandrasekhar Jaiswal also attempted to purchase the Factory/Godown of Shri BadreAlam Siddique situated at above mentioned place for a consideration of Rs. 18 crores, in lieu of which he generated huge amount of cash by indulging in the illegal activities.

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Shri Chandrasekhar Jaiswal (D-1), S/o Shri Jawaharlal Jaiswal, R/o-P-54, CIT Scheme VII-M (VIP Road), P.S-Manicktolla, Kolkata700054 was charged with the offences punishable under sections 120BIPC r.w.s. 489A, 489B, 489C and also r.w.s. 16, 17 & 18 of Unlawful Activities (Prevention) Act, 1967 and substantive offences thereunder. After investigation police filed charge sheet against him

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As the offences punishable under Section 489A, 489B, 120B of IPC and Section 16 to 18 of Unlawful Activities (Prevention) Act, 1967 (as amended in the year 2013) are the schedule offences under PMLA, hence ESIR No. KLZO/12/2015 was recorded by Enforcement Directorate on 01.09.2015 against Chandra Sekhar Jaiswal.

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During investigation under PMLA, ED recorded the statement of Chandra Sekhar Jaiswal and many persons under Section 50 of PMLA. Documents were collected. After scrutiny of the same, it is revealed that Chandra Sekhar Jaiswal has generated huge amount of proceeds of crime during the period 2014-15. This is also evident from the cash deposits as well as transfer made in his firm’s account which runs in the several crores of rupees. These cash deposits and transfers were transacted in a very short span of time in one cash

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Rajesh Malhotra,

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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credit account no. 3337776570 maintained with Central Bank of India, Shyam Bazar Branch. The details of said deposits is reflected in the table in para 5(B) at page 8 of the impugned order amounting to Rs. 9,01,14,700/-. Thereafter, investigation also revealed that credits made in the said account by way of bank transfers to M/s Gupta Creation account no. 3294791492 Central Bank of India, Salkia Branch amounting to Rs. 1,00,31,000/-; Vijay Lukshmi Commodity Pvt. Ltd. account No. 3327155873 proprietor Rajiv Kumar Gupta for sum of Rs. 4,01,87,500/-, (Total amounting to Rs. 5,02,18,500/-)

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Fromthe details of cash deposits and other credits through banking modes made in the accounts under control of Chandra Sekhar Jaiswal it is revealed that he has acquired the proceeds of crime to crores of rupees, cut of which only sum amounting to approximately Rs. 14 crores in a very short of time in five months by indulging himself in criminal and unlawful activities as detailed above was detected and he admitted to utilize the same for his personal case.

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Rajiv Kumar Gupta transferred sum of Rs. 1 crore and Rs. 4 crores to the account of M/s Jaiswal Ispat Udyog Rajiv Kumar Gupta also deposit cash totalling to Rs. 8 crores in the account of M/s Jaiswal Ispat Udyog on the instruction of Chandra Sekhar Jaiswal. Investigation also revealed that sum of Rs. 13 croreswere also deposited in cash by Raj Kumar Gupta in the accounts of M/s Gupta Creation and M/s Vijay Lakshmi Commodity Pvt. Ltd. after receiving the funds from Shri Pradip Kumar Shah.

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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Investigation further revealed huge outflow from the account of M/s Jaiswal Ispat Udyog having account No. 3337776570 as detailed from serial no.1 to 6 of the table in para 5(i) at page 12 to 16 of the impugned order. This reveals that huge amount of money was transferred from the CC account and thereafter layered into web of companies through RTGS/Cheques in order to give the proceeds of crime the colour of business transaction.

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Investigation also revealed that substantial part of proceeds of crime was also brought into different current accounts held in the name of M/s Jaiswal Ispat Udyog as mentioned in para 5(k) at page 16 & 17 of the impugned order. Investigation conducted by respondent-ED also reflected the second and third stage of layering of the proceeds of crime as mentioned in the impugned order.

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During Investigation Chandra Sekhar Jaiswal in his statement recorded on 02.12.2015 & 07.08.2017 stated that the fake currency notes were printed on demand of one Rajendra Kumar Jain for supplying into film industry. However, Rajendra Kumar Jain denied this allegation for giving such order. Investigation revealed that Chandra Sekhar Jaiswal contacted one Achintya Das, who was running a printing press in the name and style of M/s Shakti Printers for printing currency notes. Shri Achintya Das stated that he refused to print the currency notes, as the same were similar to the original currency notes in the denomination of Rs. 1000/- & Rs. 500/-. Mohammad Raj admitted that he printed the currency notes for Chandra Sekhar Jaiswal and delivered to him. Shri Sukanta Das of M/s Perfect Packagers stated that Chandra Sekhar Jaiswal approached his brother Achintya Das for printing foreign currency

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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notes stating that the same required for film industry Achintya Das admitted the fact that he printed the two consignments of foreign currency notes of various countries at the instance of Chandra Sekhar Jaiswal.

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In view of the aforesaid facts and circumstances the Adjudicating Authority confirmed the Provisional Attachment Order and thereby, sum of Rs. 44,83,449/- lying in account No. 0082050002240 held in the name of M/s Jaiswal Ispat Udyog with United Bank of India ManictollaBranch, Kolkata, was confirmed for attachment.

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Aggrieved by the said order appellant filed the present appeal.

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During the arguments learned counsel for the appellant submitted that the Adjudicating Authority failed to appreciate the fact that appellant is running a proprietorship concern in the name and style of M/s Jaiswal Ispat Udyog and was maintaining account with United Bank of India. The sum of Rs. 44,43,549/- lying in his attached account No. 0082050002240 is part of Rs. 45,78,885/transferred by way of RTGS on 14.01.2015 from account No. 400520110000280 from his another proprietorship concern M/s Mak Metal Agency with Bank of India.He further contended that as the appellant was in custody of STF on 25.02.2015, he could not have been arrested with the fake currency notes on 27.02.2015. He is falsely implicated in the police case by STF and is likely to be acquitted in due course of time. Prayer is accordingly made to allow the present appeal and thereby set aside the impugned order of attachment.

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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On the other hand, learned counsel for respondent-ED submitted that bare perusal of charge sheet and the allegation against the appellant reveals that he committed the crime being found in possession of fake Indian currency notes and foreign currency notes as mentioned in para No. 2 above. He argued that appellantgenerated the proceeds of crimeby dealing in fake Indian and foreign currency and has accumulated more than Rs. 14 crores in short span of five months, which came to light, however, the total proceeds of crime may be much more than the said detected fraud. He contended that appellant used to utilize the said proceeds of crime by layering it in different accounts in collusion with Rajiv Kumar Gupta and others to show it as genuine business transaction, without any corroborative evidence of bills and invoices. This pointstowards the direction that the said cash deposits and amount received by way of RTGS & Cheques in the proprietorship concerns of appellant Chandra Sekhar Jaiswal is clearly proceeds of crime generated from racket of fake currency. He pointed out that the amount attached by respondent-ED for sum of Rs. 44,83,449/- lying in United Bank of India is only a fraction amount of the proceeds of crime generated by the appellant. Prayer is accordingly made to dismiss the present appeal being devoid of any merits.

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After hearing the rival submissions, I have given my thoughtful consideration to the same. The bare perusal of FIR and charge sheet reveals that present appellant Chandra Sekhar Jaiswal was found in possession of huge quantity of fake Indian currency notes and foreign currency notes, as detailed in para 2 above. There is no explanation of huge cash deposits in the account of proprietorship concerns of

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Rajesh Malhotra,

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Member

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FPA-PMLA-2270/KOL/2018

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Chandra Sekhar Jaiswal V. E.D., Kolkata

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appellant as well as the amount received by way of transfers from the other proprietorship concerns of Rajiv Kumar Gupta, in absence of any genuine business transaction. Hence, there is no merit in the present appeal and the same is liable to be dismissed.

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In the light of the discussion in the preceding para, the present appeal is hereby dismissed being devoid of any merits, and thereby, the impugned order dated 16.03.2018 passed by the Adjudicating Authority is hereby upheld.

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Appeal Dismissed.

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Pronounced on this 14^th Day of June,2024.

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(Rajesh Malhotra)

Member

‘PS’

Rajesh Malhotra,

Member

FPA-PMLA-2270/KOL/2018 of Chandra Sekhar Jaiswal v. The Joint Director Directorate of Enforcement, Kolkata

Case brief

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FPA-PMLA-2270/KOL/2018 of Chandra Sekhar Jaiswal v. The Joint Director Directorate of Enforcement, Kolkata

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