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Judgment
FPA-PMLA-1872/DLI/2017
The Appeal under Section 26 of the Prevention of Money Laundering Act, 2002 is filed by AnirudhNarainAgarwal against the order dated
14.06.2017 passed by the Adjudicating Authority in OA No.78/2017.
As per respondent, demonetization policy was announced by Govt of India during the period 10.11.2016 to 21.11.2016. As per scrutiny of bank
account statements of the companies/firm, namely, M/s. Sunrise Trading Company, M/S Himalaya International, M/S R.D Traders and M/S Beagle
Marketing P Ltd revealed that during the period of 10.11.2016 to 21.11.2016, demonetized currency upto the tune of Rs. 39.26 Cr. has been deposited
by Rajiv Singh Kushwaha and his associates with the active collusion of the Branch Head, Axis Bank, Kashmere Gate, Sh. Vineet Gupta.
It is the case of respondent that during 11.11.2016/12.11.2016, Rajeev Singh Kushwaha had given Rs. 5 Lakhs and 12 Lakhs, respectively, to the
Branch Manager, Sh. Vineet Gupta. Further, on 20.11.2016,MohitGarg has given one gold bar each toVineet Gupta and ShobhitSinha, both Axis Bank
officials.
3.1 Delhi Police intercepted three persons namely (1) Devendra Kumar Jha,(2) MohitGarg& (3) Raj Kumar Sharma on 22.11.2016 carrying huge
amount of demonetized Currency Notes while travelling in white Honda City car number DL2FV-0036. The persons and car was searched by Delhi
Police in which four bags containing notes of Rs. 1000 totaling to Rs. 3.70 Crores were recovered. On interrogation these persons disclosed that they
were indulged in the illegal activity of exchange of old demonetized currency into new currency with the conspiracy and collusion of the Bank
officials.
3.2 An FIR was registered at Kashmere Gate Police Station, North Delhi on 29.11.2016 against Vineet Gupta, ShobhitSinha, Devendra Kumar Jha,
MohitGarg and Raj Kumar Sharma for the alleged offences committed by them under Section 420/120B of IPC. The schedule offences are applicable
to PMLA. Investigation for offences under PMLA was undertaken and ECIR No. 11/2016 was conducted accordingly.
3.3 During the course of investigations on 03.12.2016, search was conducted at the residential premises of Mrs. ShaliniShrivastava, sister of
ShobhitSinha, Lucknow under S. 17 of the PMLA and one gold bar weighing 1 kg was recovered. On the same day, two gold bars weighing 1 kg
each, were also recovered from the possession of Shashank Jain, one of middle men, who assisted in conversion of demonetized Currency into
monetized form.Rajeev Singh Kushwaha and bank officialsVineet Gupta &ShobhitSinha were arrested under Sec. 19 of PMLA,2002 for their
involvement in the offence of money laundering between 4/5.12.2016.
3.4 One gold bar from the possession of DevendraJha was recovered during search conducted under Sec. 17 of PMLA.
3.5 Provisional Attachment Order no. 01/2017 was issued under Sec. 5 of PMLA on 27.1.2017, attaching total properties worth Rs. 3.40 Cr., of Rajiv
Singh Kushwaha, Vineet Gupta, ShobhitSinha and MohitGarg.
3.6 Prosecution Complaint against three accused namely Vineet Gupta, ShobhitSinha and Rajeev Singh Kushwaha was filed under Section 45 of
PMLA filed on 1.2.2017.Charge framed against the said accused persons on 22.12.2017.
3.7 Provisional Attachment Order dated 27.1.2017 was confirmed by the Adjudicating Authority on 31.05.2017.
On 18.2.2017, five gold bars weighing each one kg and five piece of diamond recovered and seized from the premises of Sh.
AnirudhAgarwal(Appellant herein) under the provision of section 17 of PMLA,2002.
OA No. 78/2017 was filed on 17.03.2017 before AdjudicatingAuthority for retention of seized valuables under section 17(4) of PMLA.OA No
78/2017 was confirmed by Adjudicating Authority PMLA and permitted to retain the property till the pendency of investigation by order dated
14.06.2017.
Supplementary Prosecution Complaintwas filed on 30.03.2018 against another 18 accused, including present applicant AnirudhAgarwal.Special
Court, PMLA taken cognizance of the offence on 07.01.2019 and matter is pending for argument on bail of new accused persons, including the
present appellant.
The appellant has denied all charges who states that he is not involved in the money laundering. It is also stated by him that PMLA proceedings can
not continue in the nature of present facts of the matter.
During the course of hearing, it is argued on behalf of appellant that since the prosecution complaint has not been filed within 90 days from the date
of retention order against the appellant, therefore, the order be set-aside against the appellant.
While examining the matter, it has come to our notice that the prescribed period of 90 days was incorporated by amendment of the provision of
Section 8(3)(a) only on 19.04.2018. The said amendment was prospective and no retrospective effect can be given.
It may be another plea of the appellant that the prosecution complaint ought to have been filed within the period of 180 days as prescribed under
the Act from the date of attachment.
The said arguments were never addressed by any of the parties. The order was reserved with the understanding that after amendment carried out
on 19.04.2018, no prosecution complaint has been filed within the period of 90 days. The same is not the position of the present case. It has only come
to notice to this Tribunal once the written-submission is filed by the respondent.
Thus, both the parties are directed to argue the appeal on this aspect as to whether under the un-amended act, the prosecution complaint was to be
filed within 180 days from the date of provisional attachment order or after passing the confirmation order within the meaning of amended Section 8(3)
(a) of the Act.
List this appeal for re-hearing/fresh argument on 22.10.2019.