Page 153 - ELT_1st July 2020_Vol 373_Part 1

2020 ]ASSTT. DIR., DTE. OF ENFORCEMENT, NEW DELHI v. OMAR ALI OBAID BALSHARAF 63

12. The investigation further revealed that Mr. Omar Ali Balsharaf and
Mr. Abdullah Ali Balsharaf are maintaining Dematerialized accounts with M/s.
SMC Global Securities Ltd., 11/6B, Pusa Road, New Delhi-110060 which may be
in possession of records relating to money-laundering, more shares/evidence
which might have links with proceeds of crime derived from Agusta Westland
and certain documents including proceeds of crime and/or records relating to
money-laundering which can be useful or relevant for investigation and other
proceedings under PMLA, 2002 are secreted in their premises.
13. During course of investigation, a search under Section 17 of PMLA
was conducted on 22-3-2018 at the premises of M/s. SMC Global Securities Ltd.
(respondent No. 3) at the address mentioned above and relevant arti-
cles/documents were seized which are crucial for investigation of offence under
money laundering after the issuance of search warrants of the competent officer.
During search of premises of respondent No. 3, under Section 17 of PMLA, it was
found that depository of broker M/s. SMC Global Securities Ltd. was in posses-
sion of 42,50,000 shares of M/s. KRBL in the name respondent No. 1 and
35,88,330 shares of M/s. KRBL in the name of respondent No. 2 making a total of
78,38,330 shares of M/s. KRBL owned by respondent Nos. 1 & 2 in Dematerial-
ized form. Since it was not practicable to seize abovesaid shares in physical form,
therefore, a freezing order in terms of Section 17(1A) of the PMLA for freezing of
debit transactions in DMAT Account No. 1201910103642803 in name of respond-
ent No. 1 and DMAT Account No. 1201910103642797 in the name of respondent
No. 2, dated 22-3-2018 was issued against respondent No. 3. Thereafter, on 19-4-
2018, in accordance with the Section 17(4) of PMLA, the Enforcement Directorate
filed Original Application No. 194 of 2018 praying for retention of the docu-
ments/articles seized during the search at the premises of respondent No. 3, dat-
ed 22-3-2018 and for continuation of the freezing order dated 22-3-2018 against
debit transactions in DMAT Account No. 1201910103642803 in the name of re-
spondent No. 1 and DMAT Account No. 1201910103642797 in the name of re-
spondent No. 2 was issued to M/s. SMC Global Securities Ltd.
14. Since neither respondent No. 1 nor respondent No. 2 had joined in-
vestigation and had already attempted to shift their assets outside India, there
was a possibility that they might further try to part with proceeds of crime held
with respondent No. 3. Therefore, another search was conducted at the premises
of respondent No. 3 on 14-6-2018. During the search dated 14-6-2018, 64,94,891
shares of M/s. KRBL traded on 12-2-2018 by respondent Nos. 1 & 2 held by re-
spondent No. 4 and credited back to account of respondent No. 3 were found
and frozen vide an order under Section 17(1 A) of PMLA.
15. Further, during search, compliance officer of respondent No. 3 de-
clared that an amount of Rs. 30,35,006.90 pertaining to the shares of M/s. KRBL
were also available in their BSE Settlement Account bearing Account No.
000405071796 with ICICI Bank, CP New Delhi. The compliance officer also stated
that neither he nor anyone in his company would withdraw or transfer said
amount. Accordingly, a letter was also sent to ICICI bank directing them to
freeze aforementioned amount of Rs. 30,35,006.90.
16. In view of above, vide order dated 10-9-2018, Learned Adjudicating
Authority allowed Original Application No. 194 of 2018 finding that there were
reasons to believe that respondent No. 1 had apparently committed an offence of
money-laundering under Section 3 of PMLA and that they were in possession of

EXCISE LAW TIMES  1st July 2020  153