Red sanders smuggling case: Court rejects discharge plea

Time of India

26-05-2025

Mumbai: Referring to the statement of the accused Ajit Satam that he had exported approximately 40 containers of Red Sanders to Dubai, generating a profit of around Rs 40 crore, a special PMLA court rejected his discharge plea in a money laundering case.
A substantial portion of these cash profits, he admitted, was funneled into legitimate banking channels by providing the cash to one Pramod Kumar. Through his companies and firms, Kumar then transferred equivalent amounts into the Satam's accounts at Cosmos Co-operative Bank Ltd and Ratnakar Co-operative Bank Ltd, the statement said.
The accused further admitted to utilizing these funds to purchase and invest in various properties and projects, as well as for the acquisition of an imported vehicle.
"During his statement, he has given details of the bank, the amounts in it and has admitted about his involvement in sending red sanders out of India and how he used to do it. He has also stated as to how others have given him cheques and entries on receipt of the cash. As such, prima-facie record goes to show that the accused has been involved in smuggling of red sanders and has generated proceeds of crime," special judge AC Daga said.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around
Blinkist: Warren Buffett's Reading List
Undo
It is alleged in the Enforcement Directorate's (ED) complaint that the proceeds of crime were generated out of the smuggling of Red Sanders and subsequently, it was laundered by way of converting into cheques or RTGS and deposited in various accounts and proceeds of crime were layered by depositing the tainted funds into bank accounts by projecting them as genuine and legitimate transaction. In the predicate offence, it is alleged that the DRI officer had seized wooden logs of Red Sanders from Satam owned containers and searched his house.
The schedule or predicate offence is the criminal offence on the which the ED basis its money laundering investigations.
Seeking discharge, 55-year-old Satam's lawyer submitted that there was no expert report to show that the seized wooden logs were actually red sanders. The lawyer also submitted that seizure of wooden logs from Kolhapur does not come within jurisdiction of the customs. The lawyer also submitted that the Income Tax Returns have been filed showing the income.
"The Commissioner of Income Tax (IT), Appeal has passed an order in favour of the applicant accepting the declaration of the income by the applicant to be legal," the lawyer argued.
However, the judge said that on the bare perusal of the order, it appeared that the assessee's proposal was accepted by the Commissioner of Income Tax, Appeal with a finding that "However, assessee's proposal is accepted without verifying the source of income mentioned in the proposal."
"As such, the order itself is very clear that the source of income was not verified by the Income Tax Authority, and therefore, the accused cannot take advantage of such order," the judge said.