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TMI Blog2019 (9) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Adjudicating Authority. Facts 2. On the basis of a reference from the Central Vigilance Commission, New Delhi vide its letter bearing number 012/COL/020/1716 dated 13.04.2012, it appears that the Central Bureau of Investigation ("CBI") initiated a Preliminary Enquiry, which culminated in the registration of an FIR bearing number RC- 219-2013-E-0002 dated 08.03.2013 under section 120B read with Section 420, IPC against (i) M/s Jharkhand IspatPvt. Ltd., (ii) Shri R.S. Rungta; (iii) Shri R.C. Rungta and (iv) other Directors of M/s Jharkhand IspatPvt. Ltd., with CBI/EO-I/New Delhi (hereinafter referred to as the "said FIR"). 3. On the completion of the investigation conducted pursuant to the said FIR, the CBI filed a Final Report under section 173, Cr.P.C., bearing number 06/2014 dated 12.11.2014 under section 120B read with sections 420, 467, 468 & 471 of the Indian Penal Code before the Ld. Special Judge (PC Act) (CBI)- 7, New Delhi District, Patiala House Courts, New Delhi (hereinafter referred to as the "said Charge-sheet"), arraigning (i) M/s Jharkhand IspatPvt. Ltd., (ii) Shri R.S. Rungta (iii) Sri R.C. Rungta, (iv) ShriRamabatarKedia and (v) ShriNareshMahto as Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded that the Coal Block allocated to the Appellant herein be de-allocated. That, on 14.02.2014 the Coal Block allocated to the Appellant herein (i.e., the "North Dhadu Coal Block") was de-allocated with effect from 22.11.2012. 3.5 It was alleged in the said Charge-sheet that the Appellant had misrepresented on a number of aspects before the MoC and the 27th Screening Committee so as to inflate its claim and to thereby induce the Screening Committee and the MoC to allocate a Coal-Block to them. 4. Consequent to the said Charge-sheet and the trial conducted by the Special Judge (PC Act) (CBI)-7, New Delhi District, Patiala House Courts, New Delhi, vide Final Order and Judgment dated 28.03.2016, the Appellant along with Shri R.C. Rungta and Shri R.S. Rungta were held guilty of the offences under sections 120B read with 420, IPC; and were acquitted in respect of charges under section 467, 468 and 471, IPC. 5. The above Judgment dated 28.03.2016 has been challenged by the Appellant before the Hon'ble Delhi High Court, being Criminal Appeal No. 714/2016. The said Appeal has been admitted vide Order dated 01.08.2016 passed by the Hon'ble Delhi High Court. 6. It appears that during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... added) 8. The said ECIR further alleges that based on the inputs received from the predicate agency, there appears a prima facie case of offence of Money Laundering as defined under s. 3 of the PMLA.After registration of the said ECIR, the Respondent No. 1 appears to have carried out investigation under the provisions of PMLA and recorded the submissions of various individuals and/or companies, which are part of Respondent No. 1's Relied Upon Documents. 9. Thereafter on, 23.09.2016, the Appellant received the Provisional Attachment Order No. 01/2016 dated 15.09.2016 (hereinafter referred to as the "said PAO") whereby the Complainant/Respondent No. 1 herein attached various immovable properties of the Appellants herein, as detailed in Annexure 'A' to the said PAO. 10. In the PAO, the Respondent has categorized the Share Application money ('SAM') received by the Appellant herein from various individuals/companies/entities as the "Proceeds of Crime" generated from the Scheduled Offence of Sections 420 and 120B, IPC. It has been alleged that the Appellant herein received the 'SAM' amounting to Rs. 25,00,00,000/- (Rupees Twenty Five Crores Only), from the period 2004-05 to 2008-09, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main allegations are that the appellant has misrepresented on a number of aspects before Ministry of Coal and 27th Screening Committee as to inflate its claim. Therefore, the appellants were held guilty of the offence under Section 120B and 420 IPC. Against the conviction order, the appeal is pending for disposal. 16. We do not wish to express any opinion on finding arrived with regard to schedule offence, if committed by the appellant. The said issue is sub-judice before the High Court, the same was passed on different issuesand the same has to be decided as per its own merit.Our only concern in these appeals is as to whether attachment order passed is sustainable in law or not and/or as to whether the investment is made from the public money or not. Further, as to whether merely investment in the company is proceed of crime or not, or it amounts to money laundering. PMLA proceedings 17. ECIR bearing number 'ECIR/02/RSZO/2014' registered by the ED on 29.04.2014 on the basis of registration of FIR on 8.3.2013. It is admitted position that the coal allocations including the allocation to the appellant cancelled by the Hon'ble Supreme Court in W.P(C) No. 120/2012 passed on 25.08.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction shall be taken pursuant to Notice dated 06.12.2017. Appellant on 21.12.2017 furnished the above BG by way of speed post since the ED refused to accept the same by hand. The appellants were directed to file an affidavit, which was filed by the appellants before this Tribunal on 9.1.2018. The ED returned the Bank Guarantee under cover of letter dated 15.01.2018, on the ground that the main appeal is coming up for hearing on 17.01.2018. By order dated 17.01.2018, this Tribunal directed as under:- * Parties to maintain status quo as on the last date of hearing i.e. 21.12.2017. * Liberty was granted to ED to move Application in case it was agreeable to receive FDR of Rs. 2 Crores, without prejudice. * Interim Order was directed to continue 25. The main case of the respondent is that the appellants have received huge money on the basis of allocation of coal linkage. Since the allocation was obtained from Government by making misrepresentation, therefore, any investment made on the basis of impugned coal linkage amounts to proceed of crime. Therefore, the impugned order is sustainable in law. 26. It is the ED's case that Appellant received 'SAM' of Rs. 25 cr. (which it has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Managing Director. v) You have shareholding/ directorship in other companies of RC Rungta group of associates companies of JIPL? Ans. I am shareholder and director of Sri Durga Cement Co. Ltd. in which R.C Rungta is the director. vi) Please give details of source of fund used for purchase of shares of JIPL in the Feb 2009-2010 and provide the statement of accounts from which the payment were use to JIPL for purchase of shares? Ans. The above details has already been submitted to you through letter dated 21.3.2011. vii) Please state the reason of purchase of Jipl shares on such high premium of Rs. 150/- during the period 2009-10. Ans. I think premium of Rs. 150/- is not so high as the book value of a shares of JIPL which was amount Rs. 200, what I recall. In addition to this the track record of the company was increasing year by year. The further prospect was good in terms of expenses promoters. The market value of land also appreciated 3-4 times in year 2009-10. viii) Please furnish the name and address of the bankers of the company? Ans. The company is having banking with Kotak Mahindra Bank, Shyam Bank Kolkata HDFC Bank Ltd. Shree [illegible] Kolkata. ix) Plea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . is one of the shareholders of your company and it has also been taken from your letters that M/s Escort Trademark Pvt. Ltd. is constantly increased of your company since 2007/08. Please give details address of the company, name of the directors and its business activities? Ans. Address of the company is Diamond Prestige Building AJC Bose Road, Kolkata. Director are myself and AshishRungta. It is also an NBFC company listed with RBI during investment business. xviii) As per the answer of question No. 2 and 17 you and your brother AshishRungta both are the directors ofLupinCommodealPvt. Ltd. and Escort Trading Pvt. Ltd. as per the list of shareholders of JIPL LupinCommodealPvt. Ltd. and Escort TradelinkPvt. Ltd. both are the share holders of Jharkhand IspatPvt. Ltd. as on 31 March 2005 and M/s Escort Trademark Pvt. is the shareholders of LupinCommodealPvt. Ltd. as on 31 March 2005. Please give reasons why Escort TradelinkPvt. Ltd. has invested money in Lupin Commanded Pvt. Ltd. when LupinCommodealPvt. Ltd. itself has invested in JIPL? Ans. As per the provisions of companies act, time was no restriction in investment in group companies so as per the need the investment were ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of AlokRungta, son of Shri Ram Chandra Rungta, residing at new PNB Building main Road RanjeshCantt Director of M/s LupinCommodealPvt. Ltd., Kolkata, recorded under section 50 of PMLA read with Section 183 and 228 of IPC on 13th April 2016. I have gone through my earlier statements on 12.4.2016 under Section 50 of PMLA and I confirm that given statement recorded and based on the facts disclosed by me voluntarily. Q.1. In your previous statement 12.4.2016 you have asked to provide the details of all investment made by you and your family members either in individual capacity or as a director/ partner/ proprietor of such company in immovable and movable assets as or after 11/2001 of sources of funds for the said investment. In your reply of this question you have answered that I have no details of the investment made by myself or my wife at present. Please given the details of investment as asked in above today. Ans. First of all it has been wrongly asked as I have already given the details of immovable and movable property as appearing in balance sheet of 31.3.2015 along with source of fund as appeared in computation of income. I have submitted the papers with for myself and my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame and inform you accordingly. Q.5 Did your company M/s LupinCommodeal aware that M/s JIPL had been allotted North Dhadhu Coal Block before investment in JIPl? Ans. Yes, I was aware that company JIPL was alloted a coal mine. However, the name of same was not known to me. Q.6. As per your reply to question No.5, before investment by your company M/s LupinCommodealPvt. Ltd., it was known to M/s LupinCommodeal that M/ JIPL had been allotted a coal block. Had M/s LupinCommodeal taken consideration of allotment of Coal Blok to JIPL before investment by your company in JIPL? Ans. We have invested in JIPL after studying the balance sheet of the company and visited the plant. We have already written that we have invested the money keeping production, revenue and profit in mind. We have not considered the coal block as we know that starting coal block is a very tough job in India. Q.7 In your previous statement dated 12.4.2016 you have said that before making investment by your company in JIPL, you have considered increase in production increase in revenue and increase in profit of JIPL. Whereas in reply to today's question No. 6 that you have made investment in JIPL without consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y wife is a house wife. PAN of my wife is AGPPA8129F. b. Who are directors in M/s ToalasariyaVinyogPvt. Ltd and give their name and address. Ans. Myself and AshishRungta directors in the company having same address. c. Where were you inducted in Board of directors of M/s ToalasariyaVinyogPvt. Ltd. as a director? Ans. I was inducted director in ToalasariyaVinyugPvt. Ld. dated 3.4.2010. d. Who are chairperson and Managing Director of M/s TolasariyaVinyogPvt. Ltd. please give their name and residential address? Ans. M/s ToalasariyaVinyogPvt. Ltd. do not have a chair person and nor Managing Director. e. You have shareholding/directorship in other companies of RC Rungta Group associates companies of JIPL? Ans. I am shareholder and director of Sri Durga Cement Co. Ltd. in which R.C Rungta is the director f. Please give details of source of fund used for purchase of shares of JIPL in the Feb 2009-10 and provide the statement of account from which the payment were use to JIPL for purchase of shares? Ans. The above details has already been submitted to you through letter dated 21.3.2011. g. Please state the reason of purchase of Jipl shares on such high premium of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er shares. Apart from this the value of land and building has been increased manifold. Hence keeping in view the above points our shareholders has invested in our company for better future management. p. In how many companies are / were you directors please also state the name, address of directors of those companies? Ans. I am director at present are as below: 1. Sri Purge Cement Company Ltd. 2. Palace Projects Pvt. Ltd. 3. Escorts Tradelink Pvt. Ltd. 4. TolasariyeViniyug Pvt. Ltd. 5. Lupin Commanded Pvt. Ltd 6. Nagina Expert and Finvest Pvt. Ltd. 7. VikashFastern Pvt. Ltd. 8. Rimzim Merchants Pvt. Ltd 9. M/s Chamastika Cement of Ispat Pvt. Ltd. 10. Araanye Mines Pvt. Ltd. Rest of details will be provided later on. q. As per your reply of question No.11, you have told that the reason for investment by M/s TolosariyaViniyogPvt. Ltd. In JIPL during 2008/09 is that JIPL was growing company at that time. Please elaborately explain the meaning of growing company in the context of JIPL. Ans. Growing means increase in production capacity, income in revenue as income profits in the context of a corporate entity. In the context of JIPL as revealed through its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s Nagina Exports &FinvestmentsPvt. Ltd. I, AlokRungta son of Shri Ram Chandra Rungta aged about 33 years, Director of M/s Nagina Exports and FinvestmentsPvt. Ltd. Kolkata, presently myself before superintendent, Enforcement Directorate Ranchi Jharkhand for recording my statement in response to summon issued for appearance on 12.4.2016. I have been explained the provision related to summon and I have fully understood to same. i. What do you do and give details of your family along with their occupation and PAN details? Ans I am businessman and Director of Companies and I look after their working. My wife ShobhaRungta and son DarshRungta 1.5 years old my wife is a house wife. PAN of my wife is AGPPA8129F. ii. Who are directors in M/s Nagina Exports and FinvestmentsPvt. Ltd. and give this name and address? Ans. Myself and AshishRungta are directors in the company having same address. iii. When did you induct in Board of directors of M/s Nagina Exports and Finvest Ltd. As a director? Ans. I was inducted director in M/s Nagina Exports and FinvestmentsPvt. Ltd. dated 3.4.2010. iv. Who are chairperson and Managing Director of M/s Nagina Exports and FinvestLtd. Please ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I have already written that it has been submitted by our letter dated 21.3.2016. xiv. Is the net worth of your Co. more than the amount invested in JIPL or whether you have taken loan to invest in JIPL. Ans. The network of our company is more than the amount invested in JIPL. We have not taken any loan to invest in JIPL. xv. On what basis your shareholders have invested in your company at the time of your investment in JIPL. Ans. Our is a NBFC company registered with RBI. This being an investment company people subscribe to share capital for increase in intend value of shares. As I have already written that JIPL was a continuous growing company showing profit in all yours. The book value of shares as of today is around 300 Rs. per shares. Apart from this the value of land and building has been increased manifold. Hence keeping in view the above points our shareholders has invested in our company for better fund management. xvi. In how many companies are / were you directors please also state the name, address of directors of those companies? Ans. I am director at present are as below: 1. Sri Purge Cement Company Ltd. 2. Palace Projects Pvt. Ltd. 3. Escorts Tradel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lotted to Nagina Export and Finvest. Ans. Our company had applied Shares from the period May 2007- July 2008 and the shares we allotted to us in April 2009. Q.4. What were the authorized Capital, reserves, net worth, NAV of M/s Nagina Exports &FinvestmentsPvt. Ltd. for the financial year 2008- 09? Ans. Authorized capital was 2.3 crore, reserve 17.18 Cr Network 19.45 and NAV Rs. 85 per shares as on 31st March 2009. Q.5. Please give details of investment made by M/s Nagina Exports &FinvestmentsPvt. Ltd. since 2008? Ans. The relevant balance sheet for the period has already been given, continuing details of investment. Above statement is true and correct and given voluntarily without any pressure. Sd/- A.K. Rungta 23.5.2016. 35. Statement dated 12.04.2016 under Section 50, PMLA, of AlokRungta, Director of M/s Escorts TradelinkPvt. Ltd. I, AlokRungta son of Shri Ram Chandra Rungta aged about 33 years, Director of M/s Escorts TradelinkPvt. Ltd., Kolkata, presently Jharkhand for recording my statement in response to summon issued for appearance on 12.4.2016. I have been explained the provision related to summon and I have fully understood to same. a. What do you do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd my wife as on 31.5.2015. j. Please give the copy of the above by today. Ans. OK, I will submit the same by today. k. Why you have chosen JIPL to invest? Ans. In Jharkahnd at the time of our investment it was a growing company among private sector enterprises. So we have invested in the company as the share premium was also very low. l. What is the activity of your company? Ans. Our company is non banking Finance company (NBFC) registered with RBI. Hence the object of NBFC applies to us and we can invest in shares or loans. m. What is the source of funds for purchase the shares of JIPL? Ans. In answer to question 6 I have already written that it has been submitted by our letter dated 21.3.2010. n. Is the net worth of your Co. is more the amount invested in JIPL or whether you have taken loan to invest in JIPL. Ans. The network of our company is more than the amount invested in JIPL. We have not taken any loan to invest in JIPL. o. On what basis your shareholders have invested in your company at the time of your investment in JIPL. Ans. Ours is an NBFC company registered with RBI. This being an investment company people subordinate to share capital for incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany M/s Escorts TradelinkPvt. Ltd. Kolkata known that M/s JIPL had been allotted north Dhadhu coal block before investment in JIPL? Ans Yes, I was knowing that a coal block was allotted to JIPL, but I was not knowing the name of coal block. Q.2. Had M/s Escort TradelinkPvt. Ltd., taken consideration of allotment of North Dhadhu Coal block to JIPL before investment in JIPL? Ans. We have not considered the allotment coal block before investment in JIPL. Q.3 When had Escorts TradelinkPvt. Ltd. applied for shares of JIPL and when were the shares of JIPL allotted to M/s Nagina Export and Finvestments Pvt Ltd? Ans. Our company had applied shares from the period May 2007- July 2008 and the shares were allotted to us in April 2009. Q.4. What were the authorized capital, reserve net worth, NAV of Escorts TradelinkPvt. Ltd. for the financial year 2008-09? Ans. Authorized capital was 2.5 crore, reserve 13.83 Crore, Net worth 16.28 Crore and NAV Rs. 66 per shares as on 31st March 2009. Q.5. Please give details of investment made by Nagina Export and FinvestmentsPvt. Ltd. Since 2008-09. Ans. The relevant balance sheet for the period has already been given, continuing detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was growing day by day and was run by experienced promoters. h. Please furnish the name and address of the bankers of the company? Ans. The company is having banking with Kotak Mahindra Bank, Shyam Bank Kolkata HDFC Bank Ltd. Shree [illegible] Kolkata. i. Please give details of all the investment made by you and your family members either in individual capacity or as a director/ partner/ proprietor of such company/ firm in immovable and movable assets as on after 1.1.2006. Sources of the said investment may also be elaborated. Ans. Right now I have no details of the investment made by myself and my wife. However, if you insist, I can submit you a xerox copy of the balance sheet containing details of investment done by myself and wife as on 31.3.2015. I may also submit a copy of computation of income source of and funds. j. Please give the copy of the above by today. Ans. I will submit the same by today itself. k. Why have you chosen JIPL to invest? Ans. JIPL is a growing company in terms of production, capacity, revenue and profitability. Right from the year 2003 up to the date of investment the company was performing very well, so we have invested in the company. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and two sons. Wife, NishaAgarwal is house wife and both sons are of ages 12 years and 7 years. My salary from JIPL is Rs. 30,000/- per month. 2. Who are the other directors in M/s JIPL? Ans. Apart from myself Sri R.C. Rungta is director in M/s JIPL. 3. Who are the chairperson and managing director of M/s JIPL? Please give their name and address? Ans. M/s JIPL does not have Chairperson or Managing Director. However, Sri R.C. Rungta controls the offices of JIPL. The address of Sri R.C. Rungta is near PNB Bank Main road Ramgarh. 4. When did you induct as a director in M/s JIPL? Ans. I am inducted director in M/s JIPl since inception. 5. Do you have share holding/ directorship in other companies of RC.Rungta and group or associated Co. of JIPL? Ans. I am not a share holder or director of any co. of R.C Rungta Group or associate company of JIPL. 6. What do you know about allocation of north dhadhu coal block in M/s JIPL? Ans. I am not so much aware of the coal block as Shri R.C. Rungta and Sri R.C. Rungta looking after the matter of coal block. However, this coal Block was allotted to JIPL in 2006 and later on in 2012 it was cancelled. Q.7. Was there any product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department. Sd/- Rakesh Kumar Agarwal, 13.5.2016 39. On reading of the aforesaid Statements, it appears that the investors have invested in the shares of the Appellant company due to the coal allocation and coal linkage (allocation). Adjudicating Authority's reading of the aforesaid Statements has gone behind the said Statements and amounts to disbelieving the same, without any factual basis or material to the contrary. 40. The aforesaid statements recorded under section 50 of the PMLA have been duly signed and affirmed by the persons giving the statement. The proceedings under Section 50 PMLA are deemed to be judicial proceedings within the meaning of Section 193 and Section 298 of the IPC. The aforesaid Statements have not been disputed by the ED who even has relied upon documents in support of the said OC as well as in Show Cause Notice. The Adjudicating Authority cannot disbelieve the statements of the investors or to interpret them its own matter. The same is not permissible in law. Overall view of all the statements are to be read together and then one has to come to the conclusion the finding. Therefore, the Adjudicating Authority has gone beyond the material befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Balance Sheet of 2013-14 44. It is the case of the appellants that despite of absence of any mining activity or coal extraction, the production and Profit before Taxes of Appellant have been constantly increasing on a year-to-year basis. Even without the mining activity, the production of Appellant increased since it had a Coal Linkage till 2012 and also purchased coal from the open market.The above shows that the coal allocation had no relevance for Appellant/Defendant No. 1 and even without the same it continued to run its business and make profits.The Appellant applied for coal linkage on 27.05.2003 and was granted the same on 19.09.2006. The Letter of Assurance from Central Coalfields Limited was issued on 15.09.2008. In case the respondent is to be believed, then Appellant should have collapsed after the de-allocation. However, even after de-allocation, Appellant continued to make profits and carry out its manufacturing activities. 45. Public investment is not involved in the matter. We have been informed that no investor has protested or has filed the civil suit for recovery of investment amount after cancelling the block by the Supreme Court. Even, no contrary evidence i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scheduled Offence in this case, i.e., Section 420/120B IPC, was made Scheduled Offences on 01.06.2009.In the instant case, the alleged offence of Section 420/120B IPC stood concluded on 13.01.2006 i.e. on the date of allocation of coal block.Even the acts set out hereunder, which allegedly form part of the offence of money laundering, stood completed before 01.06.2009. Share Application Money ('SAM') was received by Defendant No. 1 from 2004-05 to 2008-09 i.e. by 31.03.2009. Shares in lieu of SAM stood allotted on 29.04.2009. Even the act of creation of assets stood completed by 02.05.2006. 48. It is submitted on behalf of appellants that prior to the amendment to S. 3 in 2013 vide Amendment Act dated 03.01.2013, the words "concealment, possession, acquisition or use" were not part of S. 3 PMLA, even as per Standing Committee Report on "Prevention of Money Laundering Amendment Bill, 2011. As such, use, possession, concealment or acquisition of alleged POC, prior to 03.01.2013 cannot be considered to determine commission of an offence u/s 3 of PMLA. Any other interpretation would be violation of Art. 20(1) of the Constitution. 49. It is stated on behalf of appellants that these p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s being prosecuted for both the aforesaid acts. The Show- Cause Notice is a mere reproduction of the text of Section 8, PMLA. It shows non-application of judicial mind. 54. There is no conduct, act or omission on the part of the Appellant that has been shown which would lead the ED to believe that the alleged proceeds of crime are likely to be concealed, transferred or dealt with in any manner which may result in frustrating any proceeding under Chapter 2 of PMLA.On the contrary, the following facts would show that the Appellant has been a running concern since the year 2003 and has paid taxes amounting to Rs. 231 crores from FY 2003-04 to FY 2016-17 (upto December 2016). 55. The transactions pertaining to receipt of 'SAM' from various other companies are duly documented, above-board and legal transactions.The proceedings related to the CBI Charge-sheet and the proceedings under the PMLA have been widely reported and publicized in the media, as such, no prudent person would be willing to deal or transact with Defendant No.1 concerning the attached assets. 56. The Adjudicating Authority again travelled beyond the materials before it to arrive at the finding that the mandatory req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid investor companies are actually group companies of the Appellant and the persons who had given statements under Section 50, PMLA, on behalf of such investor companies were related/interested persons and therefore, their statements recorded under Section 50 PMLA are not reliable and liable to be disbelieved. Though ED submitted and not in writing, it was argued by taking new stand just opposite to that put up by it in the said PAO and said OC. It is stated on behalf of appellant that the ED never put this new case in writing and the Appellant was thus never put to notice of this new case or the material, which the ED purportedly relied upon in support thereof. It is apparent from the material on record that the ED also investigated into this aspect and obtained details of shareholding and source of funds of such investor companies. After having so investigated, the ED did not conclude that these companies were group companies of the Appellant Company at the time of investment in the shares of the Appellant Company or that the Appellant had any relation to the source of funds of these investor companies. It is submitted on behalf of appellants that the Adjudicating Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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