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TMI Blog2024 (4) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... vention of Money Laundering Act, 2002, seeks bail. 2. It is the case of the prosecution that the petitioner was the Managing Director of Surana Power Ltd., (SPL) a Public Limited Company and it is alleged that SPL along with other companies had caused loss of Rs. 1,495.76 crores to the banks. 3. SPL is a fully owned subsidiary of Surana Industries Ltd., (SIL). The petitioner was the Managing Director of SIL and of SPL. Both the companies are under liquidation owing to orders passed by the National Company Law Tribunal Chennai. It is contended that SPL had borrowed funds to a sum of Rs. 1,495.76 crores from a consortium of ten banks led by IDBI bank Ltd for construction of 2x210 MW power plant at Raichur. However, owing to various delays a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .K.Power and Machinery, BLS Power Solutions, RR Tools Pvt. Ltd. However, this allegation had been very emphatically denied by the petitioner. It had been stated that the suppliers / contractors were BHEL and other contractors and not the aforementioned companies. 6. It is the further allegation of the prosecution that the petitioner had incorporated several shell companies and there was only paper transactions without actual movement of goods and these companies were used for adjustment of turnover, for inflation of the turnover and to divert the funds and loan amounts and finally to bring them back as contribution of the promoter to the companies. This allegation was also denied and disputed by the petitioner. 7. There was a further alle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, the total principal outstanding was Rs. 1,495.76 crores. It had been stated that all the Directors and promoters had indulged in manipulation of books of accounts and in transactions with shell companies to increase the turn over to get more credit facilities from the banks and thereafter misappropriating the said amounts, thus indulging in the offence of money laundering. 10. It was stated that SPL was incorporated in March 2008 and the petitioner was the Managing Director of the Company. It had been stated that a proposal was put forward to put up a steel plant at Raichur in Karnataka with 25 MW captive power plant. 11. In the counter affidavit, specific details had been given with respect to the transactions with various com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld not guilty on conclusion of trial. It was therefore, urged that the petition should be dismissed. 13. Heard arguments advanced by Mr.V.Raghavachari, learned Senior Counsel for the petitioner and Mr.ARL.Sundaresan, learned Additional Solicitor General for the respondent. 14. The learned Senior Counsel for the petitioner pointed out that the main allegation of the respondent is that the petitioner, in his capacity as Managing Director of Surana Power Ltd., had presented a project for construction of 25 MW electric plant at Raichur in Karnataka and in this regard had sought loan from a consortium of Banks. It is seen from the records that more than 1,300 crores had been sanctioned. It is however the specific case of the respondent that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follows:- "95. Section 3 of the Act which defines the offence of money- laundering reads as follows: "3. Offence of money-laundering.-Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money-laundering. Explanation.-For the removal of doubts, it is hereby clarified that,- (i) a person shall be guilty of offence of money- laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me as the product of the process or activity." 17. In the instant case, the allegation against the petitioner with respect to diversion and misappropriation of funds is that SPL had borrowed funds of Rs. 1,4945.76 crores and had not even started the 2 X 210 MW power plant at Raichur in Karanataka. The account was also declared as NPA. It is also seen that for construction, SPL had awarded sub-contracts to entities which were, according to the respondent, controlled by the petitioner. Further very specifically shell companies were incorporated and there was only paper transaction reflecting the turn over. The amounts diverted back to the companies showing them as contribution of the petitioner. All these are series allegations. 18. The fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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