DALIP JINDAL Vs. DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) By way of present application under Sec. 439 of the Code of Criminal Procedure, 1973 ('Cr.P.C') read with Sec. 45 of the Prevention of Money Laundering Act, 2002 ('PMLA') has been filed by the applicant/petitioner, seeking grant of regular bail, in case titled "Directorate of Enforcement vs. M/s Deluxe Cold Storage and Food Processors Ltd. & Ors." bearing Complaint Case No. 33/2022, pending pending before the court of learned Special Judge-04, CBI (PC Act), Rouse Avenue Court Complex, New Delhi ('Trial Court'), registered under Sec. 3 and 4 of PMLA.

(2.) As per case set up by the prosecution/Directorate of Enforcement, Bankey Behari Group of Companies, namely M/s Deluxe Cold Storage and Food Processors Ltd., M/s Sargodha Oil Mills Pvt. Ltd., M/s Mangal Pulses Pvt. Ltd., M/s Shree Bankey Behari Food Processors Pvt. Ltd., M/s Gagan Pulses Pvt. Ltd., M/s Shree NathJi Roller Flour Mills Ltd., and M/s Teluram Amar Chand & Co, were all engaged in the business of manufacturing and trading of pulses, wheat etc. and these business entities had availed working capital funds from several banks. During the period from December 2016 to March 2017, all the aforementioned companies were declared as NPA due to default in repayment of loan amounts. Thereafter, the consortium of Banks had resorted to forensic audit and on the basis of Forensic Audit Reports, the Banks had lodged complaints with CBI, leading to registration of seven FIRs/RCs against seven companies/firms of Bankey Behari Group of Companies. On the strength of seven FIRs/RCs of CBI, seven ECIRs were recorded under PMLA, which are the subject matter of present complaint case. During investigation, from the analysis of relevant documents obtained from the banks, it was revealed that these entities had availed credit facilities to the tune of Rs.480.00 crore, and the total amount defrauded was around Rs.527.32 crore. As per prosecution, this case involves default in payment of Cash Credit Limit availed by Bankey Behari Group of Companies and the CC limit had been extended on hypothecation of inventory, trade receivables (sundry debtors) and other moveable assets. Since large transactions in terms of volume and value had taken place for purchase of goods and sales of manufactured/traded goods, the analysis of the major debtors of Bankey Behari Group of Companies was crucial since the debtors were emanating from fake sales which had taken place under broker codes B00000, B00001, B00003 and B00033. It was discovered during investigation Bankey Behari Group of Companies were making entries for bogus/paper sale to its customers under different broker codes, and the broker codes such as B00000, B000001, B00003 and B00033 were used for making false sale bills in the accounting software. Further during investigation, it was found that the Company was involved in paper sale and purchase with paper companies, created at the behest of Director Amarchand Gupta, his son Ramlal Gupta and his nephew Sanjay Kansal. The details of total amount of bogus/paper sale and purchase within the entities of Bankey Behari Group of Companies have been mentioned in the prosecution complaint. As revealed during investigation, the proceeds of crime which was Bank fund, was used to project it as personal capital of director infused in the form of share capital in Bankey Behari Group of Companies. Thus, it was found that the CC limit fund was siphoned in the form of share capital amounting to the tune of Rs.149.02 crore, in the form of bank interest to the tune of Rs.232.98 crore, and in the form of Income tax expenses to the tune of Rs.38.66 crore, i.e. total amount of Rs.420.66 crore. It was also found that 85-90% of the business of M/s Shree Bankey Behari Food Processors Pvt. Ltd., was on paper i.e. without actual movement of goods. Similarly, the debtors emanating out of these financial transactions were also false and were subsequently written off either through JVs or simple write offs. Thus, the surplus projected by M/s Shree Bankey Behari Food Processors Pvt. Ltd. was false and the interest and tax payments were sourced out of enhanced working capital limits and not out of business surplus, and thus, bank funds were siphoned of and diverted towards discharge of interest and tax liability. Therefore, it became clear during the course of investigation that the entire chicanery had revolved on the fulcrum of paper/bogus sale and purchase for projecting paper/bogus revenue and paper/bogus profit of Bankey Behari Group of Companies, so as to dissipate the proceeds of crime in share capital infusion and investment in fixed assets thereof, and a large portion of proceeds of crime was also used to pay the interest of the Banks. Investigation also revealed that set of debtors were also common for the Bankey Behari Group of Companies. During investigation, the Directorate of Enforcement had also found that the present applicant Dalip Jindal was involved, through his companies, in sales and purchase, when there was no actual movement of goods.

(3.) In view of these facts, all the seven ECIRs against the Bankey Behari Group of Companies were amalgamated into one complaint, in order to present a holistic view of the criminal conspiracy. The complaint was fled against 44 accused persons. Six accused were arrested in this case including the applicant Dalip Jindal.