When Amount received can be termed as proceeds of crime liable to be confiscated or for compensation
Case Law Details
Ravina and Associates Pvt. Ltd. & Anr. Vs Central Bureau of Investigation & Anr. (Delhi High Court)
Ravina And Associates Pvt Ltd. (Petitioner) were maintaining accounts with National West Minister Bank, London in which the amount transferred by TPE (Techno promexport Russia) to RAPL (’Ravina And Associates Pvt Ltd.’) had been frozen by the order of the Special Court and could not be operated. And the frozen amount is received in India is beyond the amount in relation to the impugned transactions with TPE. So the amount which does not relate to the impugned transaction along with the interest accrued thereon be directed to be released to the Income-Tax authorities for recovery of the tax demand due towards the Petitioner as the Department sought recovery of income tax penalty and interest payable by Ms. Ravina Khurana and by RAPL.
The issue before Delhi High Court is whether the entire amount frozen in accounts with National West Minister Bank London is the case property or alleged proceeds of the crime and may be liable for confiscation in case the Petitioner’s are convicted and thus cannot be utilized for fulfilling the tax demands due against the Petitioners.
The Hon’ble Delhi High Court held that under the Section 13 sub-section (2) of Prevention of Corruption Act, 1988, in the matter of imposition of fine the legislatures have provided that the Courts in fixing the amount of fine shall take into consideration the amount or the value of the property which the accused person has obtained by committing the offence. In this case the amounts transferred by TPE to RAPL in the NatWest Bank, London account, in relation to the impugned transaction is totalling to a sum of USD 2,15,71,843.90. However, the amount which was frozen and received in India is beyond the amount in relation to impugned transactions with TPE, considering this, the Court.
Directed:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
