Dismissed

FPA-PMLA-526/IDR/2013 of Shri Dilawar Patel v. The Deputy Director, Directorate of Enforcement, Indore

ATFP13 Feb 2025FPA-PMLA-526/IDR/2013

Case brief

AI extract

What is this about?

Single Bench of Appellate Tribunal under the PMLA dismissed appeals filed by appellants seeking release of attached immovable properties in lieu of a cash deposit of Rs. 60 lakhs held to be proceeds of crime. The court held that no rule permits substitution of immovable properties with cash deposits.

What did the court decide?

Property attached as proceeds of crime was not released in lieu of cash deposit; appeals dismissed.

FPA-PMLA-526/IDR/2013 of Shri Dilawar Patel Vs. The Deputy… — Banking and Recovery | ATFP (2025)

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BEFORE RAJESH MALHOTRA, MEMBER, SINGLE BENCH; APPELLATE TRIBUNAL UNDER SAFEMA: AT NEW DELHI

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(1) FPA-PMLA-526/IDR/2013 Shri Dilawar Patel

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(2) FPA-PMLA-546/IDR/2013 Mohd. Islam Patel

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… Appellants

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Versus

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The Deputy Director, Directorate of Enforcement, Indore

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… Respondent

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Advocates/Authorized Representatives who Argued

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For the Appellants : Sh. Udayan Sinha, Advocate, For the Respondent : Sh. Kshitiz Aggarwal, Advocate.

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FINAL ORDER

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13.02.2025

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Present appeals are filed by the appellants against the order dated

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06.09.2013 passed by the Adjudicating Authority in Original Complaint

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No.182/2013 vide which Provisional Attachment Order No. 01/2013

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dated 11.03.2013 was confirmed for attachment of following properties:-

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SL. No.	Description of the properties	Name of the Seller	Name of the Purchaser	Amount
1	Village Makodia, Tehsil, Sanwer, District Indore Survey No. 477, Area 0.101 hectare Surevey No. 478, Area 2.097 Hectare Survey No. 479 Area 0.069 Hectare Survey 480 Area 0.222 Hectare Survey no. 483 Area 1.212 Hectare Survey No. 484/1 Area 0.463 Hectare Survey No. 484/2 Area 2.224 Hectare Total Area- 6.388 Hectares	Sh. Rameshchandra S/o Late Sh. Laxminarayan Malu Smt. Rajubai W/o Iate Sh. Laxminarayan Malu Shri Sureshchandra S/o Late Sh. Laxminarayan Malu	Sh. Mohd. Islam Patel S/o Sh. Haji Alam Patel	Value of Land Rs. 29,00,000/- Registration Charges Rs. 2,95,970/- Rs. 31,95,970/- (Date of Registration 16.11.2006)
2	Village Chidkhana, Tehsil, & District Indore Patwari Halka No. 22 Survey No. 2, Area 1.951 hectare Surevey No. 6/1, Area 1.874 Hectare Survey No. 13 Area 0.817 Hectare Area 0.1975 Hectare Out of total area of	Sh. Shyamprasad S/o Sh. Badri Prasad Sh. Rajendra Prasad S/o Sh. Badri Prasad Smt. Shobhabai	Sh. Anwar S/o Sh. Dilawar Patel Shri Liyakhat S/o Sh. Dilawar Patel (D1) Sh. Mohd. Maksood S/o	Value of Land Rs. 25,44,405/- Registration Charges Rs. 2,59,646/- Rs. 28,04,051/- (Date of Registration 17.10.2006)

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FPA-PMLA-526 & 546/IDR/2013 Dilawar Patel & Md. Islam Patel v. ED, Indore

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0.405 Hectare of Survey No. 14/1	W/o Iate Sh. Subhashchandra	Mohd. Islam patel (D2)
Total Area 6.8025
hectare	Sh. Tushar S/o Iate Sh. Subhashchandra	Sh. Sohrab S/o Sh. Haji Alam Patel
	Shri Kunal S/o Late Sh. Subhashchandra	Shri. Mohd. Makbul Islam Patel(D2)
		Total	60,00,021/-

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2. As per the facts of the case FIR No. 611/2009 dated 22.08.2009 was registered by Indore Police and after completion of investigation, charge-sheet was filed on 18.11.2009 against Sh. Nimal Chand, Sh. Mukesh Goyal, Sh. Jagadish, Sh. Dilawar Patel, Sh. Mohd. Islam Patel, Sh. Sohrab Patel, Sh. Raj Kishore, Smt. Pushpabai, Smt. Krishna, Smt. Nirmala Bai, Smt. Gomati, Smt. Lata, Smt. Bharati, Smt. Nirmala and Sh. Champalal for the commission of offences under section 409, 418, 420, 120B, 201 of IPC and also u/s Prevention of Corruption Act, 1988. As per the Police Investigation, Dilawar Patel and his brothers Mohd. Islam Patel and Sh. Sohrab Patel jointly owned agriculture land at Khazarana, Nipania Road, Indore, Survey No. 172/1, 172/2, 173 & 174/3 measuring 50 acres of land. Devi Ahliya Shramik Kaamgar Sehkari Sanstha (DASKSS), Indore issued 3 cheques of Rs. 20 lacs each, as advance for purchasing the aforesaid land, as per following details: -

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(i) Cheque No. 10110 dated 27.07.2006 to Dilwar Patel. (ii) Cheque No. 10112 dated 25.07.2006 to Mohd. Islam Patel, (iii) Cheque No. 10111 dated 19.07.2006 to Sohrab Patel.

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Sh. Dilawar Patel deposited the said cheques in his account no. 1470/17830 with Indore Premier Cooperative Bank, Mohrani Road, Indore. Mohd. Islam Patel deposited the cheques in his account no. 880210100017628 with Bank of India, Saket Nagar, Indore, and Sohrab Patel deposited the cheque in his account no. 1470/17829 with Indore Premier Cooperative Society, Indore. However, no land was transferred to

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FPA-PMLA-526 & 546/IDR/2013 Dilawar Patel & Md. Islam Patel v. ED, Indore

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DASKS for the said payment, but they in-turn, utilized it for purchasing land measuring 24.433 acres at value of Rs. 37 lakhs situated at Chhidkana Village, Indore, in the names of Sh. Anwar Patel, Mohd. Liyakat Patel, Mohd. Maqsood Patel, Mohd. Maqbook Patel and Sh. Sohrab Patel and the remaining amount was used for purchasing 5.59 acres of land in Village Mockkodia, Sanwar Tehsil, Indore for consideration of Rs. 29 lakhs in the name of Sh. Mohd. Islam Patel. In the police investigation, it was concluded that the said three persons misappropriated the amount of Rs. 60 lakhs received from DASKS in purchasing the above two land in pursuance of conspiracy by not transferring land in favour of DASKS, but the same was transferred to the Deepak Jain alias Dilip Sisodia. Being case of money laundering, in view of the commission of predicate/scheduled offence u/s 418, 420 and also u/s 13 of Prevention of Corruption Act, 1988, the Directorate of Enforcement Indore, recorded ECIR No. 02/2010/AZO/IDR dated 24.03.2010 and initiated the investigation under PMLA. During the investigation, ED recorded the statements of the suspects/accused persons under section 50 of PMLA and after being satisfied regarding the commission of aforesaid offences, attached the two properties as mentioned in para no.1, the same being acquired from the proceeds of crime generated by committing fraud with DASKS. Thereafter, Original Complaint No. 182/2013 was filed before the Adjudicating Authority for confirmation of the said attached two properties.

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The Adjudicating Authority being satisfied with the material on record issued the Show Cause Notice to the defendants and after receiving the replies and hearing the arguments confirmed the PAO, vide its order dated 06.09.2013. Being aggrieved with the said order, the appellants filed the present appeals.

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FPA-PMLA-526 & 546/IDR/2013 Dilawar Patel & Md. Islam Patel v. ED, Indore

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3. During the arguments, Ld. Counsel for the appellants confined his arguments to the aspect that appellants have already deposited Rs. 60 Lakhs, the alleged proceeds of crime with the Trial Court as per the condition of bail. Prayer is accordingly made to set-aside the impugned order and thereby release their properties, in lieu of the said deposit of Rs.60 lacs.

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Ld. Counsel for the respondent ED strongly opposed the contention of appellants on the ground that the proceeds of crime amounting to Rs.60 Lacs was immediately & directly utilized by appellants and their family members for purchasing the two lands, which were subsequently attached by ED. There is no rule to permit the substitution of the immovable properties with the cash deposit. Any accretion in value of attached properties, on account of inflation of land prices will also go to the benefit of the complainant DASKS, being purchased from the proceeds of crime.

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I am not satisfied with the contention of Ld. Counsels for the appellants, in view of the just and reasonable objections raised by Ld. Counsel for the respondent ED, as mentioned in the preceding para. 6. Accordingly, present appeals are hereby dismissed being devoid of any merits.

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Appeals Dismissed .

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Pronounced on this 13^th day of February, 2025.

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(Rajesh Malhotra) Member

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‘ST’

FPA-PMLA-526/IDR/2013 of Shri Dilawar Patel v. The Deputy Director, Directorate of Enforcement, Indore

Case brief

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FPA-PMLA-526/IDR/2013 of Shri Dilawar Patel v. The Deputy Director, Directorate of Enforcement, Indore

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