Disposed

FPA-PMLA-2469/JL/2018 of M/s. H.P. Forex Pvt. Ltd. v. The Joint Director, Directorate of Enforcement, Jalandhar

ATFP19 Mar 2025FPA-PMLA-2469/JL/2018

Case brief

AI extract

What is this about?

The Appellate Tribunal disposed of an appeal regarding the retention of seized material under PMLA Section 26. The court distinguished between confiscated currency and other seized items, directing the return of documents and records not relied upon in any ongoing case.

What did the court decide?

Direction to release seized documents, digital records and articles not relied upon by ED or any investigation agency.

FPA-PMLA-2469/JL/2018 of M/s. H.P. Forex Pvt. Ltd. Vs. The Joint… — Money Laundering | ATFP (2025)

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APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. … Appellant

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Versus

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The Joint Director, Directorate of Enforcement, Jalandhar … Respondent

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For the Appellant Advocates/Authorized Repr	: esen	Ms. tative	Anupriya Yadav, Adv. s who Argued
For the Respondent	:	Mr.	Ritesh Agrawal, Adv.
CORAM
SHRI G. C. MISHRA		:	MEMBER
SHRI RAJESH MALHOTRA		:	MEMBER

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FINAL ORDER 19.03.2025

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Dictated by: Rajesh Malhotra

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Present appeal is file under Section 26 of Prevention of Money Laundering Act, 2002 (PMLA) against the order dated 25.06.2018 passed by the Adjudicating Authority in Original Application No. 165/2018 vide which ED was permitted to retain the seized Indian Currency, Foreign Currency, Digital Devices and documents as mentioned in Annexure-1 to Annexure-4 of the seizure memo which are also reflected at page 3 to page 10 of the impugned order. The said documents/articles/currency was permitted to be retained as

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under:

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“a) continue during the pendency of the proceedings relating to any offence under this Act before a court or under corresponding law of any other country before competent court of criminal jurisdiction outside India as the case may be;

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b) become final after an order of confiscation is passed under subsection (5) or sub-section (7) of section 8 or section 588 or sub-section (2A) of section 60 by the Adjudicating Authority.”

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As per the fact of the case FIR No. 60/2012 dated 06.01.2012

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was registered at Police Station Kartarpur, District Jalandhar under Section 420 IPC and Section 21 of the NDPS Act, 1985 and another

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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FIR No. 49 dated 02.06.2012 registered at Police Station Garhshankar, District Hoshiarpur, Punjab under Section 21 of NDPS Act, as per information received from the Police vide letter dated 09.08.2012, in the said letter it is mentioned that Punjab Police had busted and International Drugs Cartel and recovered synthetic drugs called methamphetamine and ephedrine worth Rs. 200 Crores. Ranjit Singh Kandola and others were involved in manufacturing and supplying of narcotics drug on a very large scale and acquired huge amount and invested the proceeds of crime in various movable and immovable properties.

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During the course of investigation, the statements of three accused persons namely Sukhwinder Singh S/o Jarnail Singh, Sukhwinder Singh S/o Balbir Singh and Gurinder Singh S/o Harbhajan Singh was recorded wherein they admitted having collected cash payments from M/s HP Forex Pvt. Ltd., Jalandhar (herein appellant).

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All the three accused persons in their statements admitted that they knew Shri Ranjit Singh, alias Sh. Raja Kandola and they used to work for him on monthly salary basis during the period 2011-12. They also admitted their involvement in collecting delivery of drugs and other such substances and had collected payments from the respondent company for drugs supplied. They also accepted that they are accused in the FIR registered against them.

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To trace the proceeds of crime and links of M/s HP Forex Pvt. Ltd., with the accused persons, business premises of the said company at Sheikha Bazar, Jalandhar, Punjab was searched on

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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10.01.2018. During search Indian Currency, Foreign Currency, Electronic devices and incrementing documents/articles were seized as mentioned in Annexure-1 to Annexure-4. The reasons to believe for issuance of search warrant was also forwarded to the Adjudicating Authority vide letter dated 11.01.2018. The Original Application No. 165/2018, alongwith the incriminating material and statements was forwarded to the Adjudicating Authority to permit the retention of the same for the purpose of further scrutiny and investigation in the case.

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The Adjudicating Authority being satisfied with the facts and allegations mentioned in the Original Application alongwith the relied upon documents and statements issued the Show Cause Notice to the defendant’s M/s HP Forex Pvt. Ltd., through its Directors for filing the reply. After receiving the reply and hearing the rival submissions, the Adjudicating Authority permitted the retention of the said seized currency, digital record and documents.

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Aggrieved by the said order appellants filed the present appeal.

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During the arguments Ld. Counsel for the appellant company submitted that the appellant company is engaged in the business of Forex Trade. After the search at the premises of the appellant by ED, they came to know that the premises have been search in relation to some Sh. Raja Kandola and accused in drug cases. The Directors of the appellant company are not aware of any such persons and they have no business dealings with the said accused. Ld. Counsel for the appellant stressed that there is no documents or link evidence to connect the present appellant company or its director with any of the

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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accused persons whatsoever. Prayer is accordingly made to allow the present appeal and thereby direct the Respondent ED to release the seized material.

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On the other hand, Ld. Counsel for the respondent ED pointed out the statements of the three accused persons who stated as under:

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I. Statement of Sukhwinder Singh S/o Jarnail Singh in his

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statement dated 18-06-2015, he stated that;

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Sh. Raja Kandola used to send him to factories manufacturing medicines at Baddi, Himachal Pradesh with Arwinderpreet Singh @ Sodhi, Amanpreet Singh Cheema, Gurinder Singh @ Ginda to bring Pseudo Ephedrine and received salary of Rs 15000/- per month from Raja Kandola and Arwinderpreet Singh;

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He was facing trial in Additional Session Judge Jalandhar in FIR no. 60/2012 registered by Police Station Kartarpur and 270 Gram Heroin was recovered from him;

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He had brought Rs. 50,00,000/- in cash on seven occasions from Pyara and Happy in the year 2009 and 2010; that this amount was further handed over to Raja Kandola; that Pyara and Happy were owners of H.P. Forex Pvt. Ltd. 363, Sheikhan Bazar, Jalandhar.

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II. Statement of Sukhwinder Singh S/o Balbir Singh in his statement dated 15-06-2015 he stated that,

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FIR no. 49/2012 Police Station Garhshankar was registered against him under NDPS Act and 20 kg. Pseudoephidrin has been recovered from him;

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He was also an accused in FIR no. 60/2012 Police Station Kartarpur and there was no recovery from him in that FIR;

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He was working for Ranjit Singh @ Raja Kandola resident of Banga since 2010 and brought Pseudo-ephedrine from

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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one Sukhwant Singh @ Sukha Gakhal resident of Gakhal;

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He worked with Ranjit Singh Kandola from 2010 to 2012 for Rs 15000/- per month salary:

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Ranjit Singh Kandola prepared Ice Drug from the Pseudo-Ephedrin at his farm house in Samrala alongwith Punit Khurana of Delhi and Harkamaljit Rupa of Jindowal;

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In the year 2011 he brought Rs 5,00,000/- each on two occasions (Total Rs. 10,00,000/-) in cash from H.P. Forex Pvt. Ltd., 363, Sheikhan Bazar, Opposite Arora Fashion, Jalandhar and further handed over this amount to Raja Kandola.

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III. Statement of Gurinder Singh S/o Harbhajan Singh in his statement dated 16-07-2015, he stated that;

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He knew Ranjit Singh Kandola and met with him through Sukhwinder Singh @ Laddu;

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He was gunman of Raja Kandola and worked with him from 2011 to 2012 on a salary of Rs. 10000/- per month;

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Ranjit Singh Kandola sent him to PAP Chawk, Jalandhar from Samrala in the month of December 2011 and January 2012 and received Rs.10,00,000/-from an unknown person; that he further handed over this amount of Rs 10,00,000/- to Kulwinder Singh Mann at his residence in Phagwara; that Raja Kandola sent him to Jalandhar from Samrala, where an unknown person came at PAP Chowk on scooter and handed over Rs. 8,50,000/- in cash to him; that he handed over this amount of Rs 8,50,000/- to Kewal Singh Kandola F/o Ranjit Singh Kandola, before coming to Jalandhar he called the person from whom amounts were to be collected, later-on, he came to know that the person from whom he had received the amount belonged to H.P. Forex Pvt. Ltd. Sheikhan Bazar, Opposite Arora Fashion, Jalandhar.

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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He further pointed out that in order to trace the proceeds of crime and the link of M/s H.P. Forex Pvt. Ltd. its business promises situated at Sheikhan Bazar, Jalandhar were searched on 10.01.2018 and during the search ED seized Indian Currency, Foreign Currency, Electronic devices and incriminating documents/articles vide Panchanama dated 10.01.2018. Thereafter Original Application No. 165/2018 was filed before the Adjudicating Authority for permission to retain the same. The Ld. Adjudicating Authority after giving opportunity of hearing rightly permitted the retention vide order dated 25.06.2018. He argued that the order passed by the Adjudicating Authority is well reasoned and detailed order and hence the same be maintained.

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After hearing the rival submissions, we have given our thoughtful consideration to the same. Ld. Counsels for both the sides failed to point out whether any Original Complaint is filed by ED after passing the Provisional Attachment Order qua the said movable properties or alternatively any prosecution complaint is filed before Ld. Special Judge PMLA Court, wherein the said seized material is relied upon by the ED. However, both the sides admitted the fact that the seized Foreign Currency of USD 2249, GBP 360, AUD 220 and Euro 500 alongwith Indian Currency worth Rs. 27 lacs is the subject matter in the FEMA case and the Adjudicating Authority vide order dated 12.02.2020 confiscated the said currency alongwith imposition of penalty against M/s H.P. Forex Pvt. Ltd. and its Directors Mukesh Kumar and Piyara Lal. Therefore, question of releasing the confiscated currency does not arise. As far as the seized and retained documents and digital records are concerned, we

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FPA-PMLA-2469/JL/2018 M/s. H.P. Forex Pvt. Ltd. v. Enforcement Director (ED), Jalandhar

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are of the view that the seized documents and articles which are not relied upon by ED or any other investigation agency in any other case needs to be returned. However, the remaining relied upon documents and already confiscated currency etc. cannot be returned.

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In sequel to our observations in the preceding para the present appeal is hereby disposed of with direction to comply with this order within six months from the date of expiry the period of limitation.

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Appeal disposed of with direction.

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Pronounced on this 19^th Day of March, 2025.

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(Rajesh Malhotra) (G. C. Mishra) Member Member

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‘AK’

FPA-PMLA-2469/JL/2018 of M/s. H.P. Forex Pvt. Ltd. v. The Joint Director, Directorate of Enforcement, Jalandhar

Case brief

What is this about?

What did the court decide?

FPA-PMLA-2469/JL/2018 of M/s. H.P. Forex Pvt. Ltd. v. The Joint Director, Directorate of Enforcement, Jalandhar

Case brief

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