Deepak Sharma Vs Deputy Director Directorate of Enforcement (Appellate Tribunal Under Safema At New Delhi)
Ponzi Funds Parked through “Mind is King” – Tribunal Upholds Attachment of ₹5.5 Crore under PMLA
The appellants challenged attachment of ₹5.52 crore (bank balances & properties) under PMLA. ED alleged that ₹5.5 crore received by M/s Mind is King from Future Maker Life Care Pvt. Ltd. (FMLC)- a ₹3,000-crore Ponzi scheme – represented laundered funds.
Deepak Sharma claimed the money was payment for two lakh copies of his book “Mind is King”, while others argued their properties were independently acquired.
Tribunal noted that Deepak Sharma, in his statements recorded under Section 50 of PMLA, admitted that the firm was formed with Bansi Lal & that the ₹5.5 crore transfer came from FMLC. The plea of coercion was rejected. ED’s evidence showed Mind is King was used to park proceeds of crime & that the book-sale story was a façade.
On the legal plea that “reasons to believe” for attachment were not disclosed, the Tribunal held that Section 5(1) of PMLA only requires such reasons to be recorded in writing, not communicated to the person concerned. It further ruled that when tainted money is dissipated, properties of equivalent value can be attached even if acquired earlier, relying on Vijay Madanlal Choudhary (SC) & Axis Bank (Del HC).
Holding that ₹5.5 crore received by Mind is King represented proceeds of crime from the FMLC Ponzi scheme, the Tribunal upheld attachment of all properties & dismissed all four appeals as devoid of merit.
FULL TEXT OF THE ORDER OF APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
