Dr. Jagdeesh Sagar Vs Sunita Sagar (Appellate Tribunal Under SAFEMA at Delhi)
The Appellate Tribunal under SAFEMA dismissed the appeals and upheld the attachment of properties worth ₹3.33 crore under the PMLA in connection with the Vyapam scam, holding that the properties constituted “proceeds of crime or value thereof”.
The Tribunal rejected the plea of violation of natural justice, noting that Dr. Jagdeesh Sagar had duly acknowledged receipt of the show cause notice along with relied documents while in judicial custody, and adequate opportunity was available through representation. Technical objections regarding service were held to be afterthoughts without denial of signature or receipt.
On merits, the Tribunal held that the argument that properties were acquired prior to the offence period is irrelevant, since under PMLA, even “value of proceeds of crime” can be attached, irrespective of the timing of acquisition. It was established from investigation records and statements that the accused was engaged in fraudulent activities since 2008, and the properties were linked to such illegal earnings.
Further, the Tribunal upheld attachment of properties standing in the name of Dr. Sunita Sagar (wife), even though she was not an accused, holding that under PMLA, attachment is not restricted to accused persons but extends to any person holding proceeds of crime. Her own statement revealed lack of knowledge about the source of funds, supporting the inference that the assets were acquired from illicit funds routed through her name.
The Tribunal also noted the modus operandi-collection of money from candidates, routing funds through loans and repayments, and conversion into properties, establishing clear money laundering activity.
Accordingly, finding no merit in any of the contentions, the Tribunal confirmed that the properties were involved in money laundering and liable for continued attachment.
FULL TEXT OF THE ORDER OF APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
These appeals arise from the order of the Adjudicating Authority (AA) constituted under the Prevention of Money Laundering Act, 2002 (PMLA), dated 04.08.2015 in Original Complaint (OC) No. 482/2015 confirming the Provisional Attachment Order (PAO) No. 07/2014-2015 dated 30.03.2015 in Enforcement Case Information Report No. ECIR/02/2014/AZO/IDR/VYAPAM/ SAGAR, whereby the provisional attachment of following properties relating to the appellants herein was confirmed:
Summary of attached properties:
