MM TAX CLUB

In continuance of Anti-Drug operations, on the basis of specific intelligence, officers of Central Bureau of Narcotics (CBN), Neemuch, intercepted a Mahindra Trailer truck near Shri Dev Narayan Bhojnalay on Udaipur-Bhilwara highway, Gangrar, Chittorgarh, Rajasthan, and seized 267 Plastic bags of Poppy Straw (Doda Chura) weighing 5,057.300 kg (including 55 bags of CPS (Concentrated/ Unlanced Poppy Straw) weighing 824.200 kg) on 07.1.2024.

After receiving specific intelligence that a Mahindra Trailer truck with registration number of Rajasthan would carry a huge quantity of Poppy Straw (Doda Chura), a team of officers of CBN Neemuch was formed and dispatched on 07.1.2024. After a strict surveillance on the suspected route, the vehicle was successfully identified and intercepted near Shri Dev Narayan Bhojnalay on Udaipur-Bhilwara highway, Gangrar, Chittorgarh, by the CBN officers.

The truck carried 120 bags of cattle feed as cover cargo to conceal the Poppy Straw. The truck was thoroughly searched at the CBN Office and total 267 plastic bags of Poppy Straw weighing 5057.300 kg was recovered. After completion of legal formalities, the recovered Poppy Straw along with cattle feed and trailer were seized and one person was arrested under the relevant provisions of NDPS Act, 1985.

In another case of smuggling of poppy straw, on the basis of specific intelligence, officers of Central Bureau of Narcotics (CBN), Chittorgarh, along with support of DNC office Neemuch searched a house in village Dhakdi PS Pipaliya Mandi, district-Mandsaur (M P) and recovered 1131.900 kg poppy straw in 57 plastic bags on 06.01.24. The owner of the house tried to escape in darkness but alert officers of CBN apprehended him successfully. After completion of legal formalities, the recovered Poppy Straw was seized and one person was arrested under the relevant provisions of NDPS Act, 1985.

The year 2023 has been one of the most successful years for Central Bureau of Narcotics (MP Unit) in countering smuggling contraband.

In the year 2023, record breaking Anti-Narcotics Operations were undertaken with 116 seizure cases in which 150 persons were arrested and 87 vehicles were seized.

Different and unique modus operandi were busted. Total drugs seized was approximately 70 tonnes, including Poppy Straw (Doda Chura), Opium (Afeem), Heroin (Brown Sugar), Cannabis (Ganja), M.D. Powder, Codeine Phosphate syrups etc. This the highest number of cases in a year in the history of CBN. Approximately Rs. 1 crore cash was also seized during these operations. During many of these interceptions, government vehicles also got damaged during high speed chases with numerous firing incidents.

The biggest destruction operation of illicit opium poppy crop by Central Bureau of Narcotics in India till date i.e., Operation “PRAHAAR” was undertaken in which destruction of 10,326 Hectares (25,526 acres) of illicit opium in states of Arunachal Pradesh (8,501 hectares) and Manipur (1,825 hectares), despite adverse terrain, and safety risks was successfully executed.

Operation “SHAKTI” was launched in Himachal Pradesh in which 1,124 hectares (2,777 acres) of illicit Cannabis (Ganja) crop was destroyed by CBN officers. This was also the biggest destruction operation of illicit Ganja conducted by CBN in Himachal Pradesh.

Income Tax Department initiated search and seizure operations in the case of a group, engaged in the manufacturing of wires and cables and other electrical items on 22.12.2023. Some of the authorised distributors of the group were also covered in the search. The search action was conducted at more than 50 premises located in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi.  

During the course of the search operation, a large number of incriminating evidences in the form of documents and digital data have been found & seized. These evidences reveal modus-operandi of tax evasion adopted by the group in connivance with some of the authorised distributors. Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc for suppression of its taxable income.

Credible evidences recovered during the search have established that the flagship company has made unaccounted cash sales of around Rs. 1,000 crore which are not recorded in the books of accounts. Evidences of unaccounted cash payments of more than Rs. 400 crore made by a distributor, on behalf of the flagship company towards purchases of raw materials, have also been seized. Further, non-genuine expenses in the nature of sub-contracting expenses, purchases and transport expenses, etc.  aggregating to about  Rs. 100 crore have also been identified in the seized evidences from the premises of the flagship company.

The search action also resulted in determination of unexplained transactions undertaken by the distributor for issuing bills without genuine supply of goods whereas such goods have been sold in open market in cash. Thus, the authorised distributor facilitated certain parties to inflate their purchase accounts, which aggregate to about Rs. 500 crore. This distributor exclusively sells products of the flagship company.

 During the course of search operation, unaccounted cash exceeding Rs. 4 crore, has been seized and more than 25 bank lockers have been put on restraint.          

 Further investigations are in progress. 

The Competition Commission of India (CCI) has approved acquisition of remaining 30% equity stake in Signet Excipients Private Limited by IMCD India Private Limited.

The proposed combination relates to the acquisition of the remaining 30% equity stake in Signet Excipients Private Limited (Target) by IMCD India Private Limited (Acquirer) by exercising a call option.

The Acquirer is an indirect wholly owned subsidiary of IMCD N.V. and is located in Mumbai, India. IMCD N.V. is a Dutch entity and has a presence across various jurisdictions. The acquirer is engaged in the sales, marketing, and distribution of specialty chemicals including food and pharma ingredients in the Indian market through the following product segments: (i) Pharmaceutical Excipients; (ii) Food and Nutrition Ingredients and Excipients; (iii) Coatings and Construction chemicals; (iv) Advanced Materials (Plastic Additives and Composites); (v) Lubricants and Fuels chemicals and additives; (vi) Textile chemicals and additives; and (vii) Beauty and Personal Care ingredients.

Target, is jointly controlled by IMCD and its promoters. Currently, the Acquirer and the Promoters hold 70% and 30% of the equity share capital of Target, respectively. Target does not have any presence outside of India, except for minimal sales by way of exports in the Indian subcontinent and Africa. Target is engaged in the business of sales, marketing, distributing, importing, or exporting of excipients used for pharmaceuticals, nutraceuticals, biotech, food, API products, and any other related products for pharmaceutical formulation.

Detailed order of the CCI will follow.

Authorisation of Chairperson of DRAT Mumbai regarding discharging the functions of Chairperson DRAT Delhi.

In exercise of the powers conferred by sub-section (3) of section 8 of the Recovery of Debts and Bankruptcy Act, 1993 (51 of 1993), the Central Government hereby authorises the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai to discharge also the functions of the Chairperson of the Debts Recovery Appellate Tribunal, Delhi for deciding the appeals in the matter of ‘Punjab National Bank Vs M/s Jalan Containers Mfg. Corp. and Ors. (Appeal No. 111 of 2023 arising out of O.A. No. 1118 of 2022 and its connected proceedings)’ and M/s Satbir Khad Bhandar & Anr. Vs Punjab National Bank (Appeal No. 250 of 2023 arising out of S.A. No. 146 of 2021 and its connected proceedings) in addition to his being the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai.