Dismissed

FPA-PMLA-1876/GHY/2017 of Shri Dabiruz Jaman v. The Joint Director Directorate of Enforcement, Guwahati

ATFP5 Mar 2025FPA-PMLA-1876/GHY/2017

Case brief

AI extract

What is this about?

The first appellate court dismissed an appeal filed against an order confirming the attachment of the appellant's immovable property under the Prevention of Money-Laundering Act. The court held that since the trial for the predicate offence was pending, the property could not be released or confiscated at that stage, though coercive steps were stayed pending trial finality.

What did the court decide?

The appealed petition was dismissed in its entirety; however, coercive steps for possession and confiscation of the property were stayed pending the finality of the criminal trial.

FPA-PMLA-1876/GHY/2017 of Shri Dabiruz Jaman Vs. The Joint… — Money Laundering | ATFP (2025)

¶1

APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI

¶2

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman … Appellant Versus

¶3

The Joint Director Directorate of Enforcement, Guwahati

¶4

… Respondent

¶5

Advocates/Authorized Representatives who Argued

¶6

For the Appellant : Mr. Azim H Laskar, & Ms. Debarati Sadhu, Adv. For the Respondent : Ms. Nidhi Raman, & Mr. Akash Mishra, Adv.

¶7

CORAM

¶8

SHRI G.C. MISHRA : MEMBER SHRI RAJESH MALHOTRA : MEMBER

¶9

FINAL ORDER 05.03.2025

¶10

Dictated By: Rajesh Malhotra

¶11

Present appeal u/s 26 of the Prevention of Money Laundering Act, 2002, is filed by the appellants against the order dated 16.09.2016 passed by the Ld. Adjudicating Authority (AA), whereby, the properties attached by ED in PAO dated 31.03.2016 were confirmed. The details of the property of the present appellant is as under:-

¶12

(i) Immovable Property of Sh. Dabiruz Zaman Rs. 29,79,816/-

¶13

Sale Deed/Instrument No. 52 dated 03.03.2010, Details of the property are mentioned under the following Schedule of the said Sale Deed: Schedule-A: A plot of land measuring 16.29 Ares covered by Dag No. 163 & 208 under K.P Patta No. 207 of Sahar Guwahati 5th Khanda of Ulubari mouza within the district of Kamrup Assam;

¶14

The land bounded on North: Land belonging to Late Bhabani Kanta Bhuyan South; Land belonging to Late Gangaram Choudhury East:Land belonging to Mr. Gautam Baruwa West; Ajmali Land Schedule B: Western portion of fourth floor with the super built-up area of 2128.44 Sq. Ft standing on the Chandralaya Apartments over the land as described in Schedule-A herein above with the village of egress and ingress to and from the floor having common facilities of passage and stair case and other facilities as contained in this Deed of Agreeement together with proportionate right over the Land.

¶15

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶16

¶17

2. As per the facts of the case, Central Bureau of Investigation, AntiCorruption Branch, Shilong filed chargesheet against the accused persons on 13.12.2012, namely, Debruz Jaman, Sh. Deepolal Hozai, Sh. Ranveer Singh Gandhi, Sh. Charan Singh Gandhi, in the court of Special Judge, CBI, Assam, Guwahati, for commission of offence punishable u/s 120 B IPC r/w 409 of IPC, and also r/w section 13 (ii) r/w, Section 13 (i) (d) of PC, Act, 1988, and substantive offences thereunder.

¶18

Similarly, second chargesheet was also filed by CBI, ACB, Shillong on 23.11.2011 against the Depolal Hozai, Jayantha Kumar Ghosh @ Drubo Ghosh, Pradip Kumar Rai, Sh. Joythanon Thaosen, Sh. Debabrata, Sh.Debasish Bhattacharjee, Sh. Karuna Sindhu Das, Sh. Hemadri Sekhar Das and Sh. Keshab Bhattacharjee in the Court of Special Judge, CBI, Assam, Guwahati for offences punishable u/s 120 B, 420,468,471 of IPC and Section 13 (2) r/w 13(1) (c) & (d) of PC Act, 1988 and substantive offences thereunder.

¶19

Accordingly, on the basis of above chargesheet, the Directorate of Enforcement, Guwahati, recorded ECIR No.03/2012/GAV/PMLA dated 09.02.2012 and ECIR No.02/2013/GAV/PMLA dated 23.08.2013 initiated investigation for the commission of offence of money-laundering and to detect the trail of the laundered money against the said accused persons/suspects.

¶20

As per the CBI investigation in chargesheet no.6 dtd. 13.12.2012, the CBI concluded that Sh. Depolal Hojai was functioning as the Chief Executive Member of N.C Hills Autonomous Council from 08.01.2008 to 27.11.2008 and Sh. Dabiruz Jaman (D-4) was holding the post of Divisional Forest Officer (DFO) N.C Hills, Haflong Division from 01.04.2003 to 24.03.2009. Sh. Ranbir Singh Gandhi (D-6) and his son Sh. Charanjit Singh Gandhi (D-5) had entered into an agreement with N.C Hills Autonomous Council, Haflong since 1993 onwards to supply

¶21

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶22

¶23

bamboo to Hindustan Paper Corporation Ltd (HPCL), Jagiroad, Nagaon and Panchgram, Silchar on behalf of the Council. D-6 in partnership with his son D-5 and other family members had established firms viz. M/s Hills Trade Agencies, M/s Dimasa Associates, M/s Enn Cee Hills Traders and M/s Dimalik Forest Agencies sometimes in year 2006 for dealing in the business of supplying of bamboo to HPCL. In the year 2004, the project of 4-Lanning of NH-54 was carried out by the National Highway Authority of India (NHAI) which passes through N.C Hills. A sum Rs. 9,48,33,330/- was paid by NHAI to the DFO, N.C Hills, Haflong Division as compensatory afforestation during the period from 06.09.2006 to 16.12.2010. Out of the amount Rs.9,48,33,330/-, no irregularities were found in utilization of the sum of Rs.58,65,265/-, which was received and utilized by the next DFO, Sh. Shankar Hazarika, DFO. Out of Rs. 8,89,68,035/-, D-4 deposited Rs.3,23,48,618, into the DFO (2/6-4047), maintained at Langpi Dehangi Rural Bank, for which there was no sufficient evidence to prove criminality and misappropriation. The remaining amount of Rs. 5,66,19,417/- was deposited into the DFO, NCHD maintained account (A/c No. 0455050032300) at UBI, A.T Road Branch, Guwahati on 06.03.2008, 08.03.22008, 29.03.2008 & 04.04.2008. Shri Dabiruz Jaman (D-4) then deposited Rs. 10,000,000/- into the Principal Secretary (N) Dimasa Associates account (A/c No.0455050028055) vide Cheque No. 015103 dated 10.03.2008 & Cheque No. 015102 dated 10.03.2008 maintained at UBI, A.T Road Branch, Guwahati and deposited Rs. 4,49,00,000/-into the Principal Secretary (N) Enn Cee Hill Traders account (A/c No.0455050028063) vide Cheque No.015105 dated 04.04.2008, Cheque No. 015107 dated 04.04.2008 maintained at UBI, A.T Road Branch, Guwahati. Out of the remaining amount of Rs. 17,19,417/-, it is alleged that Shri Dabiruz Jaman (D-4) had misused Rs. 16,99,000 The Standing

¶24

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶25

¶26

Instructions have been issued to the Bank by the N.C Hills Autonomous Councils Authorities to automatically transfer the funds received in the above-mentioned Principal Secretary (N) accounts to the account of M/s Dimasa Associates (A/c No.28020) and M/s Enn Cee Hills Traders (A/c No.28047), a partnership of Shri Ranbir Singh Gandhi (D-6) and Shri Charanjit Singh Gandhi (D-5). Accordingly, an amount of Rs.1,00,00,000/- was deposited into the account of M/s Dimasa Associates on 12.03.2008 and Rs.4,49,00,000/- was deposited into the account of M/s Enn Cee Hills Traders on 09.04.2008 and 11.04.2008. The amount of Rs.5,49,00,000/transferred into the private partnerships accounts were subsequently withdrawn and utilized by (D6) and (D-5) for the purpose of their business like payment of vehicle loan, overdraft facility, payment to labourers etc. and thus the entire amount of Rs5,49,00,000/- was misappropriated by the N.C Hills Autonomous Council, without implementing any schemes for which the money was released by NHAI. The charge sheet pertains to the offences punishable under section 120 B IPC r/w 409 of IPC and also section 13 (2) r/w 13 (1)(d) of PC Act and substantive offences thereunder.

¶27

As per the chargesheet no. 8 dated 23.11.2011 the CBI concluded that during the year 2008, Shri Depolal Hojai, the then Chief Executive Member (CEM), N.C. Hills Autonomous Council (NCHAC) now known as Dima Hasao Autonomous Council entered into a criminal conspiracy with Shri Jayanta Kr Ghosh Drubo Ghosh (D-1), a private contractor and awarded work contract worth of Rs. 2.5 Crores to him relating to construction of roads at Retzol-Amaranagar (RA Road), LodikachariAinacherra Road, Moucher-Phaipui Road, Muollien-Cherphai road, Moullien-Tattephai road, Ramvom Tattephai Road and Jinamghat Vongzol road (hereinafter refer to as the 'said work') under PWD, Mahur Division, Assam. A payment of Rs. 1.72 Crores was made to D-1 for the

¶28

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶29

¶30

works related to PWD, Mahur Division and Rs. 30 lakhs 40 Lakhs for works relating to PWD, Haflong Sub-Division and it is alleged that Shri Depolal Hojai had received an amount of Rs (30-50) Lakhs out the total amount of payment made to D-1. Shri Depolal Hojai also awarded work contract worth of Rs. (38-40) Lakhs to accused D-1 in May-June 2008. However, there is no mention of any payment made to D-1 in this regard. The proprietary firms viz. M/s Maa Trading, M/s Borail Enterprise, M/s Jeet Enterprise and M/s Loknath Trading eating (hereinafter refer to as 'the said firms were opened by Shri Debashish Bhattacharjee under the direction of Da wo the sole intention to siphon off the Government money. The 'said firms' were not registered with the PWD, Govt. of Assam or any other State Government Departments for carrying out contract works relating to constructions of roads and that no work was executed by the D-1 or any other person(s) on his behalf at the 'said work'. To facilitate the crime, fake Tenders had been prepared, fake estimation of work has been prepared, fake bills & payment receipt has been made by back dating. No Notice for inviting Tenders has been put up in any of the local newspaper or on the notice board of the Department, and no Earnest Money was shown as collected from any of the applicant. The charge sheet pertains to the offences punishable under section 120 B IPC r/w 420, 468, 471 of IPC and section also r/w13 (2) r/w 13 (1)(c) and (d) of PC Act, 1988 and substantive offences thereunder.

¶31

During the investigation, ED, recorded the statements of the suspects/accused persons and others on various dates and also collected the documents from the various sources, including, CBI, and the concerned Banks. On the basis of the said material, the Joint Director, of Enforcement Directorate formed the reasonable belief that the properties identified during the PMLA investigation were acquired from the proceeds of crime, and accordingly, the same were attached vide

¶32

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶33

¶34

PAO dated 31.03.2016. Thereafter, Original Complaint No. 585/2016 along with relied upon documents and statements was filed, before the Ld. Adjudicating Authority for confirmation of PAO.

¶35

The Ld. AA being satisfied with the allegations coupled with the relied upon documents and the statements recorded u/s 50 of PMLA, 2002, etc. issued Show Cause Notice (SCN) to all the defendants. The defendants filed their response/replies. After going through the replies and hearing the rival submissions, the Ld. AA confirmed the PAO vide order dated 16.09.2016.

¶36

Aggrieved by the said order, Appellants filed the present Appeal.

¶37

Arguments from the side of the Appellant:

¶38

3. During the arguments, Ld. Counsel for the appellant submitted that no independent investigation was conducted by respondent ED with respect to the alleged predicate offence. He stressed that the whole investigation is based on presumptions and assumptions without considering the fact that appellant Dabiruz Jaman was subordinate officer working within an Autonomous District Council and he had no knowledge about the commission of certain irregularities and he being subordinate has to follow instructions coming from the Chief Executive Member of the Autonomous District Council. He stressed that after the transfer of present appellant, subsequent incumbent Sh. Shankar Hazarika took the charge as the DFO of the said Autonomous District Council and he utilized the amount of Rs. 58,65,265/-. However, no irregularities were detected in utilization of the said amount at the time of handover of the charge to Sh. Shankar Hazarika. He never complained of any irregularity or anomaly after his transfer. The alleged allegation of misuse of Rs. 1,69,90,000/- is baseless and absurd.

¶39

He further contended that even otherwise the property purchased by the present appellant vide sale deed No. 52 dated 03.303.2010 has no

¶40

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶41

¶42

connection directly or indirectly with the alleged proceeds of crime. He further argued that appellant purchased this property vide agreement to sell dated 02.03.2010 for sum of Rs. 29,64,220/- and the sale deed was executed between the two parties on 05.06.2010. He further contended that for purchasing this property, he took loan of Rs.15,00,000/- from Housing Development Finance Corporation (HDFC) Ltd. as reflected in the loan documents and the remaining amount was from his savings. He pointed out the receipts for making payment to the builder Chandrale Apartments which are at Annexure A-1 in Folder 3 of the Appel Paper Book. He contended that the said flat is not acquired from any proceeds of crime, and hence, question of is attachment does not arise. He further contended that appellant is residing in this only house and he has no other accommodation. Prayer is accordingly made to allow the present appeal.

¶43

Arguments from the side of the Respondent:

¶44

On the other hand, Ld. Counsel for the respondent ED pointed out the incriminating evidence against the appellant and he stressed that he was actively involved in the commission of predicate offence along with his associates. This flat was acquired during the period when the said scheduled offence was committed. He further submitted that the finance of taking housing loan for purchasing this property is false and incorrect. From the bare perusal of the payment’s receipts shows that he continuously made the payment to the builder Chandrale Apartments for purchasing the aforesaid property during the period of commission of schedule, i.e. Rs. 1 lakh on 02.03.2007 vide Cheque No. 693444; payment of Rs. 4 lakhs vide Cheque No. 976404/- dated 03.03.2009; payment of Rs. 5 lakhs vide Cheque No. 976416 dated 23.02.2010; payment of Rs. 4,79,816/- vide Cheque No. 976419 dated 13.03.2010. He further argued that even the payment of EMI was from the proceeds

¶45

FPA-PMLA-1876/GHY/2017 Shri Dabiruz Jaman v. ED Guwahati

¶46

¶47

of crime. Prayer is accordingly made to dismiss the present appeal being devoid of any merits.

¶48

Analysis and Findings;

¶49

After hearing the rival submissions, we have given out thoughtful consideration of the same, we are of the view that Ld. Counsel for the appellant failed to point out any valid ground to allow the present appeal. Out of sale consideration of Rs.29,79,816/-, the present appellant tendered the sum of Rs.14,79,816/- by way of installments from 2007 onwards, during the period of commission of predicate offence, which is apparently part of the proceeds of crime. The total quantum of allegation against the present appellant is for a sum of Rs. 16,99,000/-, which is approximately equivalent to the part payment made by the present appellant for acquiring the aforesaid property. Hence, the property of the present appellant cannot be released at this premature stage as trial is pending against him in the prosecution complaint case in the scheduled/ predicate offence.

¶50

In sequel to our discussion of preceding paragraph, the present appeal is hereby dismissed being devoid of any merits. However, no coercive step for possession and confiscation be taken by respondent ED, till the said criminal trial attains finality, except under exceptional circumstances as held by the Hon’ble Supreme Court of India in the case of Vijay Madanlal Chaudhary v. UOI and Ors., MANU/SC/0924/2022.

¶51

Appeal Dismissed.

¶52

Pronounced on this 5^th Day of March, 2025.

¶53

(Rajesh Malhotra) Member

¶54

(G.C. Mishra) Member

¶55

‘ST’

FPA-PMLA-1876/GHY/2017 of Shri Dabiruz Jaman v. The Joint Director Directorate of Enforcement, Guwahati

Case brief

What is this about?

What did the court decide?

FPA-PMLA-1876/GHY/2017 of Shri Dabiruz Jaman v. The Joint Director Directorate of Enforcement, Guwahati

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases