Virendra Goyal Vs Deputy Director (Appellate Tribunal Under SAFEMA Delhi)
PMLA Tribunal Upholds Attachment of Properties in NRHM Computer Procurement Scam; Differential ‘Business Profit’ Held as Proceeds of Crime
The Appellate Tribunal under SAFEMA, New Delhi, by a common final order dated 19.12.2024, dismissed FPA-PMLA-950 to 952/LKW/2015 filed by Virendra Goyal, Neeraj Upadhyay and Nidhi Upadhyay, thereby affirming the confirmation of Provisional Attachment Order (PAO) No. 01/2015 dated 15.01.2015 passed under the Prevention of Money Laundering Act, 2002 (PMLA)
The case arose from the NRHM computer procurement scam in Uttar Pradesh, where funds earmarked for Health Management Information Systems were allegedly siphoned off through manipulated tendering and advance payments. The Tribunal noted that advance payments were released even before the tender was opened, despite none of the participating firms being empanelled, and that M/s Axis Marketing and M/s Radhey Shyam Enterprises received substantially higher sums than what was ultimately paid to M/s HCL Infosystems Ltd., the actual supplier.
The Tribunal upheld the ED’s finding that the differential amount of ₹2.78 crore, retained by Virendra Goyal and Neeraj Upadhyay, was not genuine business profit but misappropriated public money, constituting “proceeds of crime”. It further held that part of these proceeds was traced into specific movable and immovable assets, including a flat in Noida, a flat in Lucknow registered in the spouse’s name, and vehicle loan instalments, justifying partial attachment to the extent of tainted funds.
Contentions that the transactions were bona fide commercial arrangements, that profits were legitimate, or that reliance on statements recorded during investigation was impermissible, were rejected. The Tribunal emphasized that bank-trail evidence, interconnected accounts, advance payments, and abnormal margins clearly established laundering of NRHM funds. Relief granted earlier to Vicky Batra was held to be case-specific and not applicable to the present appellants.
Accordingly, the Tribunal confirmed attachment of four properties involving traced proceeds of crime of about ₹63.31 lakh and dismissed all three appeals, reiterating that public welfare funds diverted for private gain squarely attract PMLA consequences.
FULL TEXT OF THE JUDGMENT APPELLATE TRIBUNAL UNDER SAFEMA AT NEW DELHI
This Order disposes of the Appeals No. FPA-PMLA-950-952/LKW/2015 filed by the Appellants, Shri Virendra Goyal, Shri Neeraj Upadhyay and Smt. Nidhi Upadhyay against the Orderdated 01.06.2015 (Impugned Order) of the Ld. Adjudicating Authority (AA) in Original Complaint (OC) No. 413/2015, wherein Provisional Attachment Order (PAO) No. 01/2015 dated 15.01.2015 was confirmed attaching the immovable/movable properties of the appellants herein.
