Court orders first confiscation under PMLA in Mumbai of Rs. 2.60 Crore

A Special Prevention of Money Laundering Act (PMLA) Court in Mumbai ordered the first confiscation of assets worth Rs. 2.60 Crore belonging to Sadhrta Retail Ltd. and Deja Vu Solutions in a ponzi scheme.

According to Enforcement Directorate (ED), this is the first confiscation under PMLA in Maharashtra.

A case was registered against the Anjana Upendra Chokshi and Kaustubh Upendra Chokshi, both directors of Sadhrta Retail Ltd., who had duped 1,100 investors in 2009.

They are believed to be absconding.

In view of the application by the Enforcement Directorate under Section 8 (7) of the under the PMLA, 2002, the PMLA special Court ordered the confiscation of the properties, involved in the money laundering, to the central Government.

In view of the order of the PMLA special Court, the properties involved in the money laundering, i.e. the amount of Rs. 2.60 crores, lying in the bank accounts of the companies wherein the accused persons were the directors, are now vested with the central Government.

The Enforcement Directorate initiated investigations against Anjana Upendra Chokshi and Kaustubh Upendra Chokshi, and others.

The investigation revealed that the accused floated a scheme viz. 'double the money in 20 days', with an intention of cheating people, by giving a false pre Initial Public Offer (IPO) of their company.

Further, the amount so collected by the accused was projected as untainted in the books of the accounts of the companies viz. Sadhrta Retail Ltd. and Deja-Vu Solutions Limited.

In the year 2015, the ED had filed a prosecution complaint against Anjana Upendra Chokshi and Kaustubh Upendra Chokshi for the offence of money laundering and for the confiscation of properties attached in the central Government.