ED has filed Prosecution Complaint against Lalit Goyal, Vice-chairman cum Managing Director of IREO Group and others under PMLA, 2002 in a case related to multi-crore real estate scam. Hon’ble Special Court, Panchkula has taken cognizance of the present complaint on 21.01.2022.

Judicial updates-19th Jan 2022

Judicial updates-19th Jan 2022

CCI directs probe against Google for Abusing its Dominant Position against Publishers

In re Digital News Publishers Association (CCI) dated 07/01/2022

NCLT/NCLAT should not pass ad hoc orders regarding fee and expenses payable to Resolution Professionals

Devarajan Raman Vs Bank of India Limited (Supreme Court of India) dated 05/01/2022

NCLAT Stays Order Initiating CIRP as parties entered Settlement Agreement

Vinayak K Deshpande Vs Nexo Industries P Ltd (NCLAT Chennai) dated 04/01/2022

SC Restores Limitation Extension & excludes Period From 15.03.2020 to 28.02.2022 From Limitation

In Re Cognizance For Extension of Limitation (Supreme Court of India) dated 10/01/2022

Section 45 PMLA Act Gets Triggered while Considering Anticipatory Bail Plea

Asst. Director Enforcement Directorate Vs Dr. V.C. Mohan (Supreme Court of India) dated 04/01/2022

Builder obliged to provide occupancy certificate to flat owners & Failure amount to deficiency in service

Samruddhi Co-operative Housing Society Ltd. Vs Mumbai Mahalaxmi Construction Pvt. Ltd. (Supreme Court of India) -11/01/2022

Comments made during Mediation or Settlement Proceedings cannot be relied by Courts

Arjab Jena@ Arjab Kumar Jena Vs. Utsa Jena @ Pattnaik (Supreme Court of India) dated 05/01/2022

Nobody has a fundamental right to a public holiday

Kishnabhai Nathubhai Ghutia Vs Administrator Union Territory (Bombay High Court) dated 05/01/2022

God cannot be summoned by Court for inspection or verification

S.P. Eswaramurthy Vs Government of Tamil nadu (Madras High Court) dated 06/01/2022

Employees refusing regular promotion offer disentitled to financial upgradation benefits

Union of India Vs Manju Arora (Supreme Court of India) dated 03/01/2022

Legal updates

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ED has attached assets worth Rs. 410 Crore of M/s Omkar Group and Sachin Joshi under PMLA, 2002 in a loan fraud case (Press Release dated 15th Jan 2022)

Enforcement Directorate has attached flats worth Rs. 330 Crore approximately in Tower C of sale building namely Omkar 1973, Worli of M/s Omkar Group and an open land situated at Viram, Pune worth Rs. 80 Crore approximately of a company belonging to Sachin Joshi under Prevention of Money Laundering Act (PMLA), 2002.

ED initiated money laundering investigation on the basis of FIR No. 109 of 2020 filed by City Chowk Police Station, Aurangabad.

ED had conducted a search last year on 25.01.2021 to 27.01.2021 and arrested Babulal Varma, Managing Director of M/s ORDPL, Kamal kishore, Chairman of M/s ORDPL and later on Sachin Joshi. The ED had earlier filed Prosecution Complaint on 26.03.2021 before the Session Court, Bombay.

ED during investigation found that loan amount Rs. 410 Crore was fraudulently acquired by M/s Surana Developers Wadala, LLP, a sister concern of M/s ORDPL through falsely increased slum dwellers numbers and FSI. Out of Rs. 410 Crore, an amount of Rs. 330 Crore was laundered into the sale building of Omkar Group and an amount of Rs. 80 Crore approximately was laundered through Sachin Joshi and his Viiking Group of companies under the guise of services and investment.

Further investigation is in progress.

Do you know ? -What is Directorate of Enforcement (ED) ? Organization set up & Functions of ED

Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India, which enforces the following laws: –

1. Foreign Exchange Management Act,1999 (FEMA) – A Civil Law, with officers empowered to conduct investigations into suspected contraventions of the Foreign Exchange Laws and Regulations, adjudicate, contraventions, and impose penalties on those adjudged to have contravened the law.

2. Prevention of Money Laundering Act, 2002 (PMLA) – A Criminal Law, with the officers empowered to conduct investigations to trace assets derived out of the proceeds of crime, to provisionally attach/ confiscate the same, and to arrest and prosecute the offenders found to be involved in Money Laundering.

The Prevention of Money Laundering Act, 2002 [PMLA] mandates that the investigation of the offence of money laundering be linked to the Scheduled Offences investigated by the concerned Central or State Law Enforcement Agencies. The scheme of PMLA thus necessitates inter-agency coordination to take effective action against persons who are found by the Law Enforcement Agencies to be involved in criminal activity. Such action under PMLA entails attaching and confiscating tainted assets, and prosecuting persons/entities for the offence of money laundering.

Organization set up

The Directorate of Enforcement, with its Headquarters at New Delhi is headed by the Director of Enforcement. There are five Regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by Special Directors of Enforcement.

Zonal Offices of the Directorate are at Ahmedabad, Bangalore, Chandigarh, Chennai, Kochi, Delhi, Panaji, Guwahati, Hyderabad, Jaipur, Jalandhar, Kolkata, Lucknow, Mumbai, Patna and Srinagar. These are headed by a Joint Director.

The Directorate has Sub-Zonal Offices at Bhubaneshwar, Kozhikode, Indore, Madurai, Nagpur, Allahabad, Raipur, Dehradun, Ranchi, Surat, Shimla, Vishakhapatnam and Jammu which are headed by a Deputy Director.

Functions

The main functions of the Directorate are as under

1.Investigate contraventions of the provisions of Foreign Exchange Management Act, 1999(FEMA) which came into force with effect from 1.6.2000. Contraventions of FEMA are dealt with by way of adjudication by designated authorities of ED and penalties upto three times the sum involved can be imposed.

2.Investigate offences of money laundering under the provisions of Prevention of Money Laundering Act, 2002(PMLA) which came into force with effect from 1.7.2005 and to take actions of attachment and confiscation of property if the same is determined to be proceeds of crime derived from a Scheduled Offence under PMLA, and to prosecute the persons involved in the offence of money laundering. There are 156 offences under 28 statutes which are Scheduled Offences under PMLA.

3.Adjudicate Show Cause Notices issued under the repealed Foreign Exchange Regulation Act, 1973 (FERA) upto 31.5.2002 for the alleged contraventions of the Act which may result in imposition of penalties. Pursue prosecutions launched under FERA in the concerned courts.

4.Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018. The objective of this Act is to provided for measures to deter fugitive economic offenders from evading the process of law in India by staying outside the jurisdiction of Indian Courts and to preserve the sanctity of the rule of law in India.

5.Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.

6.Render cooperation to foreign countries in matters relating to money laundering and restitution of assets under the provisions of PMLA and to seek cooperation in such matters.

ED has arrested Anup Nagaral, Director of M/s. Hoewelai Jinsu, Hong Kong, SAR, China Ltd. under PMLA, 2002 in a case connected with fraud of USD 249.572 million committed on banks under the guise of Merchant Trade.*

*ED has arrested Anup Nagaral, Director of M/s. Hoewelai Jinsu, Hong Kong, SAR, China Ltd. under PMLA, 2002 in a case connected with fraud of USD 249.572 million committed on banks under the guise of Merchant Trade.*

ED has attached assets worth valued at Rs.36,72,47,752/- of Nishad K, MD and his associates in the case of Morris Coin Crypto Currency Case under the Prevention of Money Laundering Act ,2002 in a cheating case (Press release dated 10th Jan 2022)

Enforcement Directorate has attached assets worth valued at Rs.36,72,47,752/- of Nishad K, MD and his associates in the case of Morris Coin Crypto Currency Case under the Prevention of Money Laundering Act ,2002 in a cheating case. The attached assets include balances in multiple bank accounts of Nishad K and his companies, immovable property including land of an associate close to Nishad K and INR equivalent of crypto currencies purchased out of the proceeds of crime by a close associate.

ED initiated money laundering investigation on the basis of the FIR registered by Kerala Police. Kerala Police has registered multiple FIRs in various districts such as Malappuram, Kannur and others. As per the FIRs, more than 900 investors were cheated to the tune of Rs 1200 crore.

The money laundering investigation carried out so far revealed that Nishad K through his various companies such as M/s Long Rich Global, M/s Long Rich Technologies and M/s Morris Trading Solutions collected deposit money from the investors in the guise of Initial Coin Offer for the launch of Morris Coin Crypto Currency. Investors were impressed by conducting promotional events in the presence of celebrities, introducing the investors to flashy websites by provision of e wallets to each investor via web-based applications. The amounts so collected by duping. the investors were siphoned through various companies operated by him and his associates.

The deposits taken from the general public were illegal and without any statutory permission from any regulatory agencies. This was a ponzy schemes & investors were lured with the promise of very high return.

The money obtained was used for the purchase immovable properties, for the purchase of various other Crypto currencies, for the purchase of luxury cars and for spending in luxury hotels and resorts. In this regard, the crypto currencies such as Ethereum (5.92387265), BTC (0.08267646), BNB (5.51232875), YFI (0.023062), VET (4284.4), ADA (226.479601), USDT (35.88576551) totally valued at INR 25,82,794 were found and all the above crypto currencies, purchased out of the proceeds of crime, were converted into INR and attached by the Enforcement Directorate.

In addition, a search action was conducted under Section 17 of the PMLA,2002 at 11 premises situated across various States such as Kerala, Karnataka, Tamilnadu and New Delhi resulting in identification of details worth of several Crore of immovable and other property details. The premises includes the residential and office premises of the entities that are related to Nishad K and his companies.

Further investigation is under progress.

ED has filed prosecution complaint against Deep Ram Thakur & his associates under the provisions of PMLA, 2002, Press Release 25.10.2021

Enforcement Directorate has filed prosecution complaint against Deep Ram Thakur & his associates under the provisions of Prevention of Money Laundering Act, 2002.

ED initiated money laundering investigation on the basis of FIR registered by the Himachal Pradesh Police, Shimla under NDPS Act,1985.

Investigation by ED revealed that Deep Ram Thakur & Others were indulged in illegal drug business for long time and invested proceeds of crime mostly in construction business.

Part of the proceeds of crime was also routed through banking channels to purchase prosperities in the name of relatives.

Earlier in this case, assets worth Rs. 4.48 Crore were provisionally attached by ED under PMLA, which were later confirmed by the Adjudicating Authority and accordingly prosecution complaint under PMLA has been filed against Deep Ram & his associates for punishing the accused for the offence of Money Laundering.

Further investigation is in progress.