Deputy Director Directorate of Enforcement Vs Puneet Godha (Appellate Tribunal Under SAFEMA Delhi)
PMLA Tribunal: ₹50 Lakh Bribe Money Seized In CBI Trap Can Be Attached Under PMLA Even If In Court Custody
The Appellate Tribunal under SAFEMA allowed the appeal filed by the Enforcement Directorate (ED) and held that ₹50 lakh recovered in a CBI trap case constituted “proceeds of crime” liable for attachment under PMLA.
The case arose from allegations that Sudhir Kumar Jain, CMD of Syndicate Bank, demanded illegal gratification from Neeraj Singhal of Bhushan Steel Ltd. in return for extending undue favour in loan matters and preventing the company’s account from being declared a Non-Performing Asset (NPA). The bribe amount of ₹50 lakh was allegedly routed through middlemen and delivered to Vineet Godha and Puneet Godha, relatives of the bank CMD.
During a trap operation conducted by the CBI on 1 August 2014, the amount of ₹50 lakh was recovered from the possession of the respondents in two instalments of ₹17 lakh and ₹33 lakh. A charge sheet was subsequently filed by the CBI under IPC and the Prevention of Corruption Act.
The Enforcement Directorate initiated proceedings under the PMLA and issued a Provisional Attachment Order (PAO) for the seized cash. However, the Adjudicating Authority refused to confirm the attachment, holding that the money was not proven to be proceeds of crime.
The Tribunal set aside this finding and held:
