Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (11) TMI 192 - SIKKIM HIGH COURT

2015 (11) TMI 192 - SIKKIM HIGH COURT - TMI - Offences under the Prevention of Money-Laundering Act, 2002 corresponding to Sections 420/467/ 120B of the Indian Penal Code - Held that:- Case has been registered in the Court of the Chief Judicial Magistrate, South and West at Namchi, against 11 (eleven) persons connected with the Petitioner-University in various capacities based on a charge-sheet submitted by the Sikkim Police for offences under Sections 420/467/471/ 201/120B IPC. - On a careful e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Petitioner-University in various capacities and concededly the charges against them in the criminal trial fall within the 'scheduled offences' under the PMLA. Thus, reference to the case of State of Haryana and Others vs. Ch. Bhajan Lal and Others : AIR 1992 SC 604, exhorting this Court to exercise its powers under Section 482 Cr.P.C. to quash the ECIR and the cognate action of attachment under Sub-Section (1) of Section 5 of the PMLA, in my considered opinion, is mis-directed and unsustain .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l Government Adv. with Mrs. Pollin Rai, Adv. Mr. Banibrata Dutta, Assistant Director with Mr. A. K. Panda, Assistant Legal Advisor JUDGMENT Wangdi, J. 1. The Petitioner is a State Private University created under the Eastern Institute for Integrated Learning in Management University Act, 2006 (Act No.4 of 2006) (hereinafter referred to as "EIILMU Act"). In this Writ Petition, the Petitioner-University seeks to quash Enforcement Case Information Report (ECIR) No. KLZO/01/2014/825-827 da .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wing:- (a) No cognizable case is at all made out firstly, for the reason that the case under PMLA was registered by the Respondents merely on the information of the Sikkim Police and not by application of their own mind and, secondly, on the bare perusal of the ECIR no offence is made out either under Part A or Part B of "scheduled offence" as defined under Clause (y) of Sub- Section (1) of Section 2 of the PMLA. (b) That the contents of the ECIR would reveal that the allegations are o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Petitioner-University had also purchased land against legitimate documents of ownership for setting up its campuses. (e) Section 3 of the PMLA is dependent upon the offences under the Indian Penal Code which first requires establishment of the commission of the 'scheduled offences' against the Petitioner in order for its income to fall within the meaning of proceeds of crime. (f) The action against the Petitioner-University under the PMLA is premature inasmuch as unless there is conv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent bank accounts, were illegal. 3. In their joint counter-affidavit the Respondents No.1 to 3, denying and disputing all material facts have asserted that the action of the Respondents is being carried out in accordance with law. It is stated that the offences punishable under Sections 420/467/471/120B IPC are scheduled offences under the PMLA making the Petitioner-University liable for the actions under challenge. 4. We need not go much into the other facts to ascertain as to whether this is a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

offence in the charge-sheet, Annexure P/12, is reproduced below:- "………………………………………………………. Vinay Rai along with co-conspirators, Mrs Usha Agarwal, Mr O.B Vijayan, Mrs Mini Juneja, Col Alok Bhandari, Mr Vinod Dahiya, Mr A.L Agarwal, Dr. R. P. Banerjee, Prof. S. Neelamegham, Dr.Rupa Raje Gupta, Dr Savita Sengar, established EIILM University with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and use of their influence members of esteemed boards to further their cause. In EIILM University too the same has been done. In addition it has come to light that eminent scholars who are retired or due retirement have been targeted who are easily susceptible to the salary and especially the positions offered, Professor Jahar Saha, Prof Neelamegham etc. This tactic taken to improve the face value of the University, to create a façade of authenticity to delude the public and distract the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

his trail would pose difficult, to establishment of campuses immediately after a year of recognition, to establishing a huge network of centres etc Also investigation reveals that money that was earned through the fees was benefitted by Rai Foundation either as a direct transaction or money transferred by EIILMU to one of its other trusts e.g. Rai Business School, Rai Technical School, and at the end indirectly benefitting Vinay Rai. Money earned that should have gone for the development of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fences under Sections 420/467/471/120B IPC are scheduled offences as mentioned in Clause (y) of Sub- Section (1) of Section 2 of the PMLA. The Respondent No.1 while passing the order of provisional attachment dated 28-10-2014, Annexure P/18, under Sub-Section (1) of Section 5 of the PMLA, inter alia, is found to have recorded the following:- "………………………………………………&helli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rangzeb Road, Lane - 12, New Delhi (ii) Smt. Usha Agarwal. w/o. Ashok Kumar Agarwal. R/o. 1A, Cornfield Road, Kolkata - 700 019 (iii) Shri Ollikara Bhaskaran Vijayan, S/o. Late O. N. Bhaskaran, R/o. Ollikara Illom. P.O. Thuravoor, Shertally, Aallippy, Dist. Kerala. (iv) Ms. Mini Juneja, w/o. Sunil Juneja, R/o. 616, Sector-37, Faridabad - 121 003 (v) Shri Alok Kumar Bhandari, S/o Sagarmal Ratanlal Bhandari, R/o. I-302, Sector-II, Sun city, Bhopal, Ahmedabad. (vi) Shri Vinod Kumar Bahiya, S/o. Nar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/471/120B of Indian Penal Code are Scheduled Offences, as mentioned in section 2(1)(y) of the Prevention of Money Laundering Act, 2002 (as amended. (b) It further reveals that all the above mentioned accused persons are associated with Eastern Institute for Integrated Learning in Management University, Sikkim, a private university which was established by Act No. 4, 2006 enacted by Govt. of Sikkim on 24.03.2006 and published by Govt. of Sikkim vide Gazette Notification No. 28/LD/2006 dated 03.04 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted permission by any competent authority. The University has several National Co-ordinations functioning all across the country for conducting distance education courses. These Coordinators made payments to the university authorities on per student basis, after keeping their commission. An off-shore campus of the University was functioning in Mauritius since 2007. Funds collected from students of EIILM University have been transferred to account of Malavika Trust and Rai Foundation. Further hug .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hellip;…………………………………………." 7. He also took note of the fact that at least 11 (eleven) Foundations/Trusts, were used by the accused persons to launder money earned from their criminal activities. The investigation under PMLA revealed, inter alia, that although the Petitioner-University was situated in Sikkim, all its activities regarding Distance Education Courses were actually cond .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version