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Showing contexts for: proxy FORMS in Sameer Mahandru vs Directorate Of Enforcement on 9 September, 2024Matching Fragments
21. The ED has further made an allegation that the Applicant flouted para 3.1.1 of policy by forming a cartel of manufacturing, wholesalers and retailers. He allegedly created a facade of independent Companies by bringing dummy Shareholders/Directors to create a corporate veil. He used a web of entities, investment and proxies to form a cartel. It is explained that neither of these activities are scheduled offences. Admittedly, the Applicant was neither a Director nor a shareholder in any of the Companies owning retail zones, which were alleged to have formed a cartel by controlling 9 zones out of 32 zones. Indo Spirits entered into legitimate business transaction with the Companys over a period of time, which cannot be termed a cartelization.