GAURAV KUMAR Vs. SERIOUS FRAUD INVESTIGATION OFFICE

JUDGEMENT

(1.) The applicant Gaurav Kumar seeks the grant of bail in CC No.720/2017 pending before the learned Special Judge (Companies Act) Dwarka District Courts, Delhi submitting to the effect that he has been vide the order dated 24.5.2019 of the Special Judge (Companies Act) Dwarka District Courts (the applicant arrayed as accused No.88) summoned for the alleged commission of offences punishable under Sections 477A read with Section 120B Indian Penal Code, 1860 and under 628 of the Companies Act 1956 and under Section 448 of the Companies Act, 2013.

(2.) The facts as put forth through the complaint case No.720/2017 filed by the Serious Fraud Investigation Office under Section 439 read with Section 212(15) of the Companies Act, 2013 and Section 193 of the Cr.P.C., 1973 bring forth that pursuant to WP(C) No.818/2015 Ranvir Singh vs. UOI filed in the Hon'ble Supreme Court of India pursuant to the order dated 14.12.2015 wherein it was alleged that Mohd. Iqbal, a resident of Saharanpur had :

(3.) It has been submitted on behalf of the SFIO that during investigation it was found that in order to launder the unaccounted money generated through illegal mining, the group head set up a huge conglomerate by incorporation of large number of companies and entities, acquiring number of shell companies and formation of a family trust and it has been revealed that the unaccounted money was brought into the financial system by way of placement of funds into the banking channel, layering of such funds to multiple entities and then integrating the same into the group entities and finally utilizing the accumulated funds for acquisition of assets. The complete investigation revealed that Rs.610.30 crores was routed through 84 entities under investigation mostly non-functional and non-income generated shell companies, for acquisition of assets i.e. sugar mills, land, FDRs, mines etc. The entities are stated to have been divided into seven Clusters based on common attributes of functionality as mentioned in the order of summoning dated 24.1.2019. As per the investigation conducted it is stated to have been revealed that the entire network of entities under investigation (EUIs) was created under the single objective of creating/acquiring legal assets out of the wealth amassed through illegal sand mining activities and that in order to achieve this goal Mohd. Iqbal and his network of companies/family members/key associates (hereinafter referred to as the Group) created a complex grid of EUIs to camouflage the source of funds. It has been alleged, however, through the complaint that the fictitious assets acquired through accommodation entry operators were liquidated to create real assets and a set of dummy/ghost shareholders and directors were used as a front to facilitate the liquidation and acquisition of assets. The said Group is alleged to have indulged in the large scale falsification of the books of accounts and as per the complaint pliable auditors and accounting professionals including the present applicant have totally disregaded the fundamental principles of accounting to please the kingpin of the Group and that many illegal acts were committed by the Group including, inter alia, stockpiling of unaccounted money and large-scale money laundering for legitimizing the proceeds of crime. The SFIO has further submitted that on the investigation report being submitted before the Hon'ble Supreme Court vide order dated 31.07.2017, the MCA was directed to take into consideration the investigation report of the SFIO to take a conscious decision whether or not to sanction prosecution and the MCA whilst exercising power under Section 212(14) of the Companies Act, 2013 issued instructions and sanction to initiate prosecution for the violations and the offences committed under the various provisions of the Companies Act, 1956 and the Companies Act, 2013 as well as under the Indian Penal Code, 1860 against 176 accused persons including the present petitioner and that the order directing the initiation of prosecution was placed before the Hon'ble Supreme Court, whereafter it was observed by the Hon'ble Supreme Court that there was nothing that survived in the matter and the petition was disposed of and as a consequence, a criminal complaint was filed before the Trial Court on 18.09.2017.