SURENDERA KUMAR JAIN Vs. ENFORCEMENT DIRECTORATE DELHI

JUDGEMENT

(1.) By way of the above captioned applications, i.e. BAIL APPLN. 1113/2017 & BAIL APPLN. 1114/2017, the present petitioners, i.e. (1) Virendra Jain and (2) Surendra Kumar Jain, seek regular bail under Section 439 Cr.P.C. in the case ECIR/01/DLZO-II/2017 dated 11.02.2017, under Sections 3 & 4 of Prevention of Money Laundering Act, 2002 (herein after referred to as PMLA).

(2.) The brief facts stated are that vide order dated 28.10.2013 the Ministry of Corporate Affairs ordered an investigation by the Serious Fraud Investigation Officer (SFIO) into the affairs of various companies. Pursuant to that an investigation was conducted by the SFIO and on 31.03.2016 an investigation report under Section 241 of the Companies Act, 1956 was filled. Thereafter, on the basis of the aforesaid investigation report, on 29.11.2016 a Criminal Complaint No. 57463 of 2016 was filed by the SFIO against various accused persons (including the petitioners herein) for violation of the provisions under Sections 233 / 628 read with 211/240 (3) of the Companies Act and under Sections 420 / 468 / 477-A / 120-B IPC before the Court of learned Additional Chief Metropolitan Magistrate (Central) Special Acts, Tis Hazari Courts, Delhi.

(3.) Subsequently, on 11.02.2017 the respondent/department on the basis of the aforesaid complaint registered a case ECIR/01/DLZO-II/2017, under Sections 3 & 4 of Prevention of Money Laundering Act, 2002 against the accused persons (including the petitioners herein). It is alleged in the said complaint that during the period of 2004 to 2010 the accused persons/petitioners entered into a criminal conspiracy for the object of providing accommodation entries to the various beneficiary companies with an aim of converting their unaccounted money through legitimate transactions by charging commission with the assistance of mediators and in this process companies and firms were used as special purpose vehicle for camouflaging the laundering. Further, the Income Tax Officer vide assessment order dated 28.03.2013 has recorded a finding that M/s Jagat Projects Ltd. had laundering its unaccounted income through a set of companies controlled by the accused/petitioners in the guise of share subscription money at a huge premium to the tune of Rs. 64.70 Crore during the financial year 2008-09, with the help of a professional Chartered Accountant Rajesh Aggarwal. The entire share subscription of Rs. 64.70 Crore has been held to be unexplained cash credit under Section 68 of the Income Tax Act, 1961 in the hands of M/s Jagat Projects Ltd. for the assessment year 2009- 10 and the commission payment of Rs. 1,16,46,000/- @ 1.80% on the total accommodation entries of Rs. 64.70 Crore made to the accused/petitioners for securing accommodation entries has been an unexplained expenses incurred during the assessment year 2009-10. It was further alleged that the accused/petitioners dishonestly and fraudulently inflated the balance sheet of the companies by fictitiously increasing its share capital and investment through rotation of cheques in the bank accounts while in fact actual value of investment in the group companies was nil. Thus, the accused/petitioners dishonestly and fraudulently made false balance sheets and thereby committed the forgery for the purpose of cheating, i.e. offences punishable under Sections 120-B / 420 IPC which are Schedule Offences of Prevention of Money Laundering Act, 2002.