TMI Blog2015 (11) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitute offences under the PMLA. Undeniably the persons named were associated with 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 unsustainable. - there is also an effective alternative remedy provided under Section 8 of the PMLA followed by the provision of appeal under Section 26 thereof. - No reason to interfere with the proceedings instituted by the Respondents - Decided against the appellant. - WP (Crl.) No. 01 of 2015 - - - Dated:- 17-9-2015 - S P Wangdi, J. For the Petitioner : Mr. Shakeel Ahmed, Adv. with Ms. Chitra Sharma, Mr. Yogesh Kumar Sharma and Mr. S. P. Bhutia, Advs For the Respondent : Mr. Karma Thinlay Namgyal, Central Government Adv. with Mrs. Pollin Rai, Adv. Mr. Banibrata Dutta, Assistant Director with Mr. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction in the criminal case under Sections 420/467/471/201/120B IPC filed against them in pursuance of the charge-sheet, Annexure P/12, it cannot be said that offences under the PMLA have been made out against them. (g) For the reasons aforesaid, the order of provisional attachment dated 28-10-2014, Annexure P/18, under Sub-Section (1) of Section 5 of the PMLA and, the subsequent order of its confirmation dated 03-03-2015, Annexure R/1, of the Adjudicating Authority in respect of 9 (nine) different 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 fit case where this Court should exercise its powers under Section 482 Cr.P.C. and quash the ECIR, except to observe what shall follow hereafter. 5. It is an admitted fact that a case h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 University went to Rai Foundation instead and to its subsidiaries and the main university lacking in infrastructure. . 6. Based upon the information derived from the charge-sheet, the Respondents No.1 and 2 registered ECIR No.KLZO/01/2014/825-827 dated 19-02-2014 under the PMLA against the aforesaid persons as the offences 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:- .. 3. (a) Perusal of letter dated 12.02.2014, received from Dy. SP.Gegee Norbu S., SPS), Sub Divisional Police Officer, Namchi Sub- Division, South Sikkim, reveals that Sikkim Police has filed a charge sheet d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 huge sums of money were removed from the account of EIILM University into the accounts of Integrated Institute of Excellence Society, Rai Technical School and Rai Business School. Vinay Rai has established a umbrella of trusts for the purpose sponsoring number of Universities all over India. EIILM University is a part of this umbrella which is established under Malvika Foundation through its subsidiary EIILM, Kolkata. . 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 Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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