9911796707
TMI Blog2025 (5) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... 361 Karur Vysya Bank, SSR Building, P.H. Road, Arumbakkam, Chennai - 106 Rs. 2,62,582/ - 2 9/2011 dated 31.03.2011 G. Padmanabhan, S/o R.V. Govindarujalu, No. 55, Avvai Nagar Main Road, Thiruvanmiyur, Chennai 027601512 467 ICICI Bank, 39, Nelson, Manickam Road, Chennai - 29 Rs. 45,112/- 2. As per the facts of the case, anticipated persons Sh. T.V. Krishna Rao and his accomplices in collusion with the officials of Central Bank of India, Mogappair Branch, Chennai siphoned away Rs. 25 crores belonging to M/s Northern Coal Fields Ltd. Singrauli, Madhya Pradesh, (M/s NCL in short) a subsidiary of M/s Coal India Ltd. a public sector undertaking, in July 2009. The CBI filed a charge sheet against Shri T V Krishna Rao and others before the Hon'ble court of Principal Special Judge for CBI cases (VIII Court), Chennai (vide Report No.09/2010 dated 26.8.2010) for offences under sections 419, 420, 467, and 471 read with section 120-B of Indian Penal code. CBI has also recommended departmental action against Sh. A. Mitra, the then Chief General Manager (Finance) and Sh. Balram Singh (Finance) of M/s NCL. Money so siphoned was transferred soon after to various accounts of different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng day. Sri Sankara Kumar did not verify the contradictory instructions and transferred the money to the account of M/S Krishna Builders. These fax messages and the letter referred to above were no longer available with the bank and are presumably destroyed. Sh. T. V. Krishna Rao with the connivance of Shri Shankar Kumar Senior manager of the Bank fabricated FD/ TDR receipt No. N301436 dated 23.07.2009 in favour of M/s NCL by using fake stamps of the bank and forging the signatures of the bank officers and dispatched the same to M/s NCL by speed post to create an Impression that indeed fixed deposit was made in favour of M/S NCL.A copy of the fax message sent by M/s NCL by which M/s NCL transferred Rs. 25 crores and requested the Central bank of India to create fixed deposit for a period of one year was received from the fax machine of Central Bank of India, Annagaar Branch. A copy of second fax message dated 23.07.2009 which was fabricated and submitted by TV Krishna Rao to Central Bank of India, Mogappair Branch was also recovered from the office premises of M/s Krishna Builders. After the sum of Rs. 25 crores was fraudulently transferred to the account of M/s Krishna Builders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the current account of his company M/s Krishna Builders. (iii) Attachment of Rs. 35,30,211/- lying in the account No. 06878640000107 of M/s Arvindh Traders, Chennai held in HDFC Bank, Gangwal Mansion, J-14, 3rd Avenue, Anna nagar, Chennai-102.(vide para 12.6.3 of the complaint). The Deputy Director wrote that out of the amount of Rs. 25 crores Rs. 3 crores was transferred to the account of M/s Arvindh Traders. Out of the same Sh. Krishanarao has withdrawn various amounts and balance lying in the account that is Rs. 35,30,211/- was attached. (iv) Attachment of Rs. 7,00,000/- lying in account No. 12258620000058 opened by Shri R. Ravi Shankar in the name, T. Suresh, HDFC Bank, No. 995-C, Second Avenue, Anna Nagar, Chennai-40 (vide para 12.6.4 of the complaint). The Deputy Director noted that out of the sum of Rs. 25 crores fraudulently siphoned from NCL accounts Rs. 10 lakhs was transferred from M/s Krishna Builders' account to the account of R. Ravi Shankar on 27.07.2009. Sh. Ravi Shankar, an employee of Sh. Krishna Rao, however, transferred the money back to the personal account of Sh. Krishna Rao on latter's instructions. Sh. T V Krishnarao made cash deposits of 7 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he funds do not belong to the Appellant Bank, as it has already compensated M/s NCL for sum of Rs. 25 Crores alongwith the interest for the intervening period. In the entire complaint ED also has not said anywhere that the funds actually belong to any the person. As per the provisions of Section 5(1)(c) the primary requirement for the attachment is that the proceeds of crime are likely to be concealed, transferred or dealt with in any manner. In the present case, in the light of the action already initiated by CBI, there is no such apprehension. Furthermore, the monies lying in the accounts of the Respondent No. 2 & 3 which has been attached by the ED are not the proceeds of crime but are the untainted monies of the Appellant Bank. The untainted funds belonging to a genuine entity does not become proceeds of crime merely because of illegal/fraudulent transfer to the other account. Ld. Counsel for the appellant argued that the subject case is only manipulation of entries and fraud being played within the banking system and the origin of the fund is from a public undertaking. The money received by the Appellant Bank which ought to have been deposited in the account of NCL has lande ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e offence of money laundering as they are proceeds of crime being taken out form the account of NCL on the basis of full documents and the same has been amply discussed in the complaint filed by the complainant as well as by the Ld. Adjudicating Authority in its Order. He contended that the Appellant Bank is entitled to claim/recover the attached amounts, the appellant bank, in terms of sub-section 8 of Section 8 of PMLA, is at liberty to seek legal remedy from the Special Court (PMLA). Furthermore, he submitted that Central Bank of India were not a party/noticee, but obtained a copy of the order later and filed the present appeal. He submitted that as per the direction of this Tribunal, the appellant approached the Ld. Adjudicating Authority by filing Misc. Application. After hearing both the sides, Ld. Adjudicating Authority passed a detailed and well-reasoned order dated 23.06.2016, whereby it was stated that in absence of rightful claim to the property by the Appellant Bank, the application was dismissed at that stage, continuing the confirmation order. Ld. Counsel for the Respondent submitted that Central Bank of India has no locus standi in the present appeal and do not qual ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
