Madras High Court
Rama Subramaniramani @ R.S.Ramani vs / on 30 October, 2022
Author: G.Jayachandran
Bench: G.Jayachandran
W.P.No.30170 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Reserved on :30.11.2023 Pronounced on:05.12.2023
CORAM:
THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN
W.P.No.30170 of 2023
and
W.M.P.No.29784 of 2023
Rama Subramaniramani @ R.S.Ramani .. Petitioner
/versus/
1.Joint Director,
Directorate of Enforcement,
Chennai Zonal Office, 3rd Floor,
Murugesa Naicker Office Complex,
Greams Road, Chennai 600 006.
2.The Home Secretary,
Ministry of Home Affairs,
North Block, New Delhi 110 001.
3.Union of India,
Through Bureau of Immigration,
East Block-VIII, Level-V, Sector-1,
Rama Krishna Puram,
New Delhi 110 001. .. Respondents
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https://www.mhc.tn.gov.in/judis
W.P.No.30170 of 2023
Writ Petition has been filed under Section 226 of the Constitution of
India praying to issue a Writ of Mandamus directing the respondents to
remove the petitioner's name from the database maintained by them
pertaining to those individuals, who are not allowed to travel abroad and
revoke the Look Out Circular (LoC) dated 30.10.2022 erroneously issued by
the 1st respondent to the petitioner.
For Petitioner :Mr.G.Guruprasath
For Respondents :Mr.P.Sidharthan
Special Public Prosecutor for R1
ORDER
An Enforcement Case Information Report (ECIR) No.ECIR/CEZ0- 1/17/2020 dated 23.03.2020 was recorded by the Directorate of Enforcement, Chennai Zonal Office-I, for investigation under the provisions of the Prevention of Money-Laundering Act, 2002 (hereinafter referred to as PMLA, 2002 or Act for the sake of brevity). The ECIR was recorded on the basis of FIR No. 39/2019 dated 02.02.2019 registered by the Central Crime Branch, Chennai against (i) M/s Quantum Global Securities Limited, (ii) 2/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 Shri Atul Narendra Malik, MD and Shareholder of Quantum Global Securities Limited, (iii) Shri Bhavesh Ramprakash Singh & (iv) Shri Rohit Arora under Section 120B read with Sections 409, 420, 465, 468 and 471 of Indian Penal Code, 1860. The FIR was forwarded by Inspector of Police, CCB, Chennai on the basis of which the present ECIR was recorded. The said FIR was registered by the CCB, Chennai on the basis of complaint received from Shri Suresh Venkatachari (herein after referred to as 'Suresh') wherein he alleged that the accused named in FIR have cheated him to the tune of Rs.144 crore by way of transferring and selling his shares on the basis of forged Delivery Instructions Slips. He stated that he has pledged 14,00,000 shares with named Accused No.1 in FIR for obtaining loan whereas they provided him loan of Rs.35 crore from the sale proceeds of his shares. The named accused No 1 demanded further 4,50,000 shares in the month of May 2018 and again in June 2018 and transferred and sold those shares as well. Thus, the named accused No.1 and other accused named in the FIR cheated him to the tune of Rs. 144 crore.
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2. During the course of investigation under PMLA, 2002, it is gathered that M/s Securekloud Technologies Limited (Formerly known as 8k Miles Software Services Limited) a company incorporated under the Companies Act, 1956 with registered office at Chennai. M/s Securekloud Technologies Limited, herein after referred to as 8k Miles is a company listed with Stock Exchanges -Bombay Stock Exchange and National Stock Exchange. The company is having total 3.05 crore issued shares out of which more than 50% was with promoters namely Shri Suresh and Shri R S Ramani, CFO of M/s Securekloud Technologies Limited (herein after referred to as "Ramani"
3. Investigation under PMLA, 2002 further revealed that in the month of March 2018, Shri Suresh through his CFO Shri Ramani, was trying to raise funds by way of pledging his equity shares of 8K Miles. In the said attempt to raise funds by way of pledging the shares of 8K Miles, Suresh 4/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 approached Shri Rohit Arora (a Loan Broker, herein after referred to as Rohit) through his CFO Ramani. Shri Rohit is an agent dealing in processing of loans to be offered by the various Share broking firms and NBFCs. Shri Rohit and Shri Ramani approached M/s Quantum Global Securities Limited, herein after referred to as M/s. QGSL". As per MOU signed between M/s. QGSL and Shri Suresh the amount of loan to be provided was 40% of total value of shares and in case of drop in prices the lender was having the right to sell the shares without obtaining NOC from the borrower. Shri Suresh transferred 14,00,000 shares of 8K Miles from his own Demat Account maintained with HDFC (IN30115127194648) to his newly opened Demat Account 1208470000014468) being maintained with M/s. QGSL on 19.03.2018 to obtain loan. At the time of transfer of shares, the price of each share was Rs. 674.80/- as on closing of the day i.e. 19.03.2018.
4. M/s. QGSL lent total Rs.35 crore approximately to Shri Suresh partially from its own sources and remaining amount as borrowed from M/s 5/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 Unity Global Financial Services Pvt Ltd (herein after referred to as M/s.Unity) and Pro Fin Capital Services Ltd (herein after referred to as M/s. Pro Fin). For arranging funds from these two companies, M/s. QGSL transferred part of shares of 8K Miles to these companies which was received by M/s. QGSL from Shri Suresh.
5. Investigation revealed that immediately after receipt of shares from Shri Suresh the said shares of Shri Suresh were transferred from the Demat account of Shri Suresh to the Demat account of M/s. QGSL in following manner;
a. On. 20.03.2018, 374500 Shares to Demat account No.1208470000000252 of M/s. QGSL.
b. On 26.03.2018, 300000 shares to Demat account No. 1208470000001085 of M/s. QGSL.
c. On 02.04.2018, 725500 shares to Demat account No. 1208470000001085 of M/s. QGSL.
Thus all 1400000 shares were moved out of Demat account Shri 6/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 Suresh within a period of 12 days to that of M/s. QGSL.
6. Shri Suresh claimed in his complaint as well as in his statement u/s 50(2) & 50(3) of PMLA, 2002 that he was not aware of such transfers and. M/s. QGSL and its promoters Shri Atul Narendra Malik (herein after referred to as Atul) and Shri Bhavesh Ram Prakash Singh herein after referred to as Bhavesh) in connivance with Shri Rohit cheated him to the tune of Rs. 144 Crores. Shri Suresh also alleged that for the said transfer, he has neither provide Delivery Instruction Slips nor has given the power of attorney to do so and M/s. QGSL used forged DI Slips to transfer the shares from his Demat account.
7. Investigation revealed that the claim of Shri Suresh is factually half I truth in so far as his knowledge of said transfers and execution of forged DI slips and criminal conspiracy behind his back is concerned. It came to light that M/s. QGSL has been continuously notifying Shri Suresh about the 7/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 transfer of shares and the confirmation in respect of such transfers were also sought from Shri Suresh by sending email on his email id:
[email protected]. Shri Suresh claimed that he is not aware of any such email id: [email protected] and the same has been wrongly and inappropriately used as his email id. Whereas, it was gathered that the said email id was provided by Shri Suresh on his Demat account opening form at the time of completion of KYC requirements. It was also gathered that Shri Suresh has opened the said Demat account with M/s.QGSL as a resident Indian, whereas he is a citizen of Republic of Singapore and permanent resident (Green Card Holder) of United States of America.
8. The petitioner herein is suspected for holding the proceeds of crime. Hence, case was registered against him in ECIR No.ECIR/CEZO- 1/17/2020 dated 23.03.2020. He was arrested on 24.03.2020. He was later released on bail on 05.05.2023 by the Hon'ble High Court in Crl.O.P.No.8838 of 2023.
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9. According to the petitioner, the predicate offence is the complaint in Crime No.282 of 2019 and Crime No.39 of 2019 stand quashed vide order of the High Court dated 10.05.2023 in connection with the co-accused by name Mr.Suresh Venkatachari. This Court has relaxed the bail condition and permitted him travel out of country vide order dated 27.09.2023. Hence, seeks to remove the petitioner name from the data base pursuant to the Look out Circular dated 30.10.2022.
10. The learned Special Public Prosecutor appearing for the respondents had filed a detailed counter wherein he has stated that the role of the petitioner is to fudging account of the company by generating the proceeds and layering the proceeds by way of investigating the same in M/s Securekloud Techologies Limited, Chennai and Southasian Digital Media and Entertainment Private Limited and routing the same to their UAE based subsidiaries is prima facie established to proceed against him for the offence 9/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 under Section 3 of PMLA Act which is punishable under Section 4 of PMLA Act. The petitioner could not give any satisfactory explanation regarding the reason for receiving the money in UAE. If the Look out Circular notice is lifted, there is every possibility of fleeing from the clutches of law and tempering the evidence.
11. The main contention of the petitioner counsel is that when a similarly placed accused Mr.Suresh Venkatachari was permitted to go abroad, this petitioner must also be provided with the same liberty.
12. This Court finds force in the submission made by the learned counsel appearing for the petitioner.
13. For his business purpose, the petitioner seeks withdrawal of Look Out Notice, since it curtails his fundamental right. His visit to UAE is necessary to renew his golden residency pass. The learned counsel submitted that the petitioner is ready to abide by any condition and he will 10/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 co-operate with the investigation and trial.
14. In the light of the facts narrated above, the Look out Circular issued by the respondent department shall be relaxed to the effect that the petitioner shall be permitted to visit UAE and return back to India on the following conditions:-
(i)The petitioner shall submit his travel programme such as date of depature to UAE and date of arrival to India to the first respondent/Joint Director, Directorate of Enforcement, Chennai Zonal Office, 3rd Floor, Murgesa Naicker Office Complex, Greams Road, Chennai along with his contact number, e-mail ID and place of stay.
(ii)His stay at UAE shall not exceed 90 days. Before the expiry of 90th day, he should return back to India and report to the first respondent.
(iii)On landing at UAE, the petitioner shall intimate his place of stay at, Indian Embassy, UAE. On receipt of the information, the Embassy shall convey the information to the first respondent herein. The Indian Embassy at UAE shall monitor over the movement of the petitioner.
(iv)On return back to India, the petitioner shall report before the first 11/13 https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 respondent about his return and place of stay forthwith.
15. Accordingly, this Writ Petition is disposed of. No costs. Consequently, connected Miscellaneous Petition is closed.
05.12.2023 Index:yes/no Netural Citation:yes/no Speaking order/Non speaking order ari To:
1.Joint Director, Directorate of Enforcement, Chennai Zonal Office, 3rd Floor, Murugesa Naicker Office Complex, Greams Road, Chennai 600 006.
2.The Home Secretary, Ministry of Home Affairs, North Block, New Delhi 110 001.
3.Union of India, Through Bureau of Immigration, East Block-VIII, Level-V, Sector-1, Rama Krishna Puram, New Delhi 110 001.
4.The Public Prosecutor, High Court, Madras. 12/13
https://www.mhc.tn.gov.in/judis W.P.No.30170 of 2023 DR.G.JAYACHANDRAN,J.
ari delivery order made in W.P.No.30170 of 2023 and W.M.P.No.29784 of 2023 05.12.2023 13/13 https://www.mhc.tn.gov.in/judis