MM TAX CLUB

RBI extends time for renewal of agreements for existing Safe Deposit Locker/Safe Custody Article Facility Provided by Banks

The Reserve Bank of India, vide its circular dated August 18, 2021, had issued revised instructions with respect to Safe Deposit Locker/Safe Custody Article Facility that inter alia required banks to enter into revised agreements with the existing locker holders by January 1, 2023. However, it has come to the notice of RBI that a large number of customers are yet to sign the revised agreement. In many cases, the banks are yet to inform the customers about the need to do so before the stipulated date (January 1, 2023).

Accordingly, it has been decided to extend the deadline for banks to complete the process of renewal of agreements for the existing safe deposit lockers in a phased manner by December 31, 2023, with intermediate milestones of 50 per cent by June 30, 2023, and 75 per cent by September 30, 2023. Further, banks have been advised to make necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp papers, etc.

Further, in cases where operations in lockers have been frozen for non-execution of agreement by January 1, 2023, the same shall be unfrozen with immediate effect.

Necessary instructions in this regard have been issued to the banks (Circular of January 23, 2023).

CBI REGISTERS THREE SEPARATE CASES AGAINST THE ACCUSED ON ALLEGATIONS OF ILLEGAL FOREX REMITTANCES (TBML) ETC AND RECOVERS Rs. 94.37 LAKH (APPROX) DURING SEARCHES AT 18 PLACES

The Central Bureau of Investigation has registered 03 separate cases against the accused including private persons; unknown officials of multi-state Co-Op. Societies and unknown public servants. It was alleged that during 2014-2016, huge amount was remitted in FOREX, abroad from the accounts of 09 entities through 08 Nationalized Banks, by submitting fake import documents such as bills of entry, bills of lading etc. without any actual trade. Aspects of Trade Based Money Laundering (TBML), were enquired Bank-wise. It was further alleged that in the instances of TBML related to Bank of Maharashtra, Mumbai, Canara Bank (e-Syndicate Bank), Mumbai and Bank of India, Mumbai, facts emerged from the acts of commission & omission on the part of accused that there was disclosure of cognizable offence committed by them. Amount of Rs.105.27 crore, Rs.41.17 crore and Rs. 8.69 crore  were allegedly remitted from the accounts of private companies (all based at Mumbai), maintained with the said 03 Banks without any actual trade, thereby causing loss of foreign exchange to the Government of India.

It was also alleged that the current accounts were opened in the names of firms/ companies, with namesake persons as Proprietor/Directors. Huge cash was allegedly collected from various sources and layered into bank accounts of the said firms. It was further alleged that the Bills of Entry were later forged to show higher USD value than the actual import value and were submitted to the bank.

Searches were conducted at 18 places including in Mumbai, Bhopal etc which led to recovery of cash of Rs. 94.37 lakh (approx) and incriminating documents, electronic gadgets   etc.

 Investigation is continuing.

CBI REGISTERS A CASE AGAINST THE ACCUSED ON THE ALLEGATIONS OF LEAKAGE OF QUESTION PAPERS OF ARUNACHAL PRADESH PUBLIC SERVICE COMMISSION EXAM AND CONDUCTS SEARCHES

The Central Bureau of Investigation has registered a case against the accused and others on the request of Arunachal Pradesh Government & further notification from Government of India and taken over the investigation of the case, earlier registered vide FIR No. 12/2022 earlier registered at SIC (Vigilance), Police Station Itanagar, Dist Papumpare (City) dated 19.10.2022. The allegations include leakage of question papers of both Preliminary & Mains and selection of undeserving candidates in APPSCCE 2017 conducted by the Arunachal Pradesh Public Service Commission on 29.07.2018 (PT) & 10.11.2018 (Mains) and other offences committed in the course of or in relation to the same transaction or arising out of the same facts.

Searches were conducted at 9 different places including at Districts Siang, East Siang, Upper Siang, Itanagar, Aharlagun etc. (all of Arunachal Pradesh) which led to recovery of several incriminating documents/articles, handwritten questions in APTET-2016, copy of Agreement, copy of Sale Agreement etc.

Investigation is continuing.

Press Release

17.01.2023

Directorate of Enforcement (ED) has provisionally attached immovable assets having present value of Rs. 90,38,912/- belonging to M/s Kausahalya Nirman Private Limited and Kaushalya Township Private Limited under the PMLA, 2002.

Investigation was initiated under PMLA, 2002 on the basis of an FIR registered by CBI, Ranchi against M/s Kaushalya Infrastructure Development Corporation Ltd and others for criminal conspiracy, cheating, forgery of valuable security, and criminal misconduct. A total number of 07 immovable properties having present value of Rs. 90,38,912/- acquired in the name of M/s Kausahalya Nirman Private Limited and Kaushalya Township Private Limited using the proceeds of crime have been attached under the provisions of PMLA, 2002.

Investigation under PMLA, 2002 revealed that M/s Kaushalya Infrastructure Development Corporation Ltd. submitted forged/fake invoices in respect of procurement of bitumen while executing the contract of road work accorded by the Road Division, RCD, Govt. of Jharkhand resulting into generation of Proceeds of Crime amounting to Rs. 1,08,95,583/-.

Earlier, ED had conducted searches in the case and seized/frozen cash amounting to Rs. 18,40,939/- lying in the bank accounts of M/s Kaushalya Infrastructure Development Corporation Ltd and its associate companies. 100% Proceeds of Crime in this case has been attached/freezed

Further investigation in the case is under progress.

Directorate of Enforcement conducted searches at various locations in Mumbai, Bengaluru, and Chennai on 17.01.2023 in relation with money laundering case of M/s Vihaan Direct Selling India Private Limited which is the master franchisee company of M/s Qnet Ltd in India. During the searches, ED has freezed total 36 bank accounts relating to various companies/individuals/proprietorship connected with the case with amounts involving more than Rs. 90 Crore.

ED initiated Money Laundering investigation on the basis FIR against M/s Qnet Ltd., Vijay Eswaran, M/s Vihaan Direct Selling (India) Pvt. Ltd. and other companies and individuals registered by EOW, Mumbai

During the investigation, it is revealed that the M/s Vihaan Direct Selling India Pvt. Ltd, a master franchise of M/s Qnet in India has used / floated various shell companies / dummy proprietorship for routing the funds received from the huge number of innocent investors. M/s Vihaan Direct Selling India Pvt. Ltd has duped huge number of innocent investors in India by way of investing their hard-earned money in the Ponzi scheme in the guise of direct selling business. Various investors were duped of their hard-earned money in the guise of huge profits without informing them the nature of business and the details of utilization of their invested money. As per FIR registered by Mumbai Police total estimated Proceeds of Crime is about Rs. 400 Crore. However, during the course of investigation, it has been observed that more than Rs. 2000 Crore has been routed by way of opening various shell companies by these entities.

The search operation at various locations in India viz. 05 locations at Mumbai, 02 locations at Bengaluru, 02 locations at Chennai. As a result of search various incriminating documents and digital devices were seized. Further, 36 bank accounts amount involving more than Rs.90 Crore relating to various Companies / individuals/proprietorship connected with the case were also freezed.

Further Investigation in the matter is under progress.