Seize ₹2.6 crore from firm directors for cheating, says Mumbai PMLA court

Anjana Upendra Chokshi and her son Kaustubh Upendra Chokshi, directors of M/s. Sadhrta Retail Ltd, allegedly cheated 1100 investors in 2009.

The special prevention of money laundering (PMLA) court in Mumbai ordered the central government to confiscate Rs2.60 crore from the bank accounts of two company directors, who allegedly cheated 1100 investors in 2009. This is the first confiscation under PMLA in Maharashtra.

The accused had floated a scheme of ‘double the money in 20 days.’ (Representational photo)

According to the Enforcement Directorate (ED), a case was registered against Anjana Upendra Chokshi and her son Kaustubh Upendra Chokshi, after a first information report filed by the Powai police station. Both accused, who are directors of M/s. Sadhrta Retail Ltd, are absconding.

“The investigation by the PMLA revealed that the accused had floated a scheme of ‘double the money in 20 days’ by giving them false promises of a pre-IPO (Initial Public Offer) of their company,” said an ED officer.

The agency had submitted an application for the confiscation under the PMLA act. Subsequently, the special PMLA court ordered the confiscation of the properties involved in the money laundering.

ED stated that the amount involved in the money laundering — the amount of Rs2.60 crore — lying in the bank accounts of the companies wherein the accused persons were the directors are now vested with the central government.

In 2015, ED had filed a complaint against them for the offence of money laundering. “The two were declared as proclaimed offenders and the confiscation of properties comes as a strict measure,” said the officer.

According to the section 9 of the PMLA, which deals with “vesting of property in Central Government,” all the rights and title in such property should be vested absolutely in the Central Government free from all encumbrances, following an order of confiscation.