Examine whether PMLA probe required in illegal assets case against former EO, HC asks Punjab DGP
On October 12, 2022, the Punjab Vigilance Bureau had arrested former Zirakpur municipal council executive officer Girish Verma for allegedly amassing huge wealth than the disclosed sources of his income by misusing his official position
The Punjab and Haryana high court has directed the Punjab director general of police (DGP) to examine whether a money laundering probe is required into the disproportionate assets case registered against former Zirakpur municipal council executive officer Girish Verma.
On October 12, 2022, the Punjab Vigilance Bureau (VB) had arrested Verma for allegedly amassing huge wealth than the disclosed sources of his income by misusing his official position.
VB had investigated the accused’s moveable and immoveable properties between April 1, 2008 and March 31, 2021, and found that he spent ₹7.15 crore more than his income. At the time of his arrest, he was posted as EO, Bhikhiwind, Amritsar.
According to the bureau, using illegally acquired wealth, Verma purchased multiple properties in his name, besides his wife Sangeeta Verma and son Vikas Verma.
Despite being unemployed, both Sangeeta and Vikas own 10 and five properties, respectively. The properties involved in the case include commercial showrooms located in Zirakpur and Panchkula, as well as residential houses in Panchkula and Ludhiana. Furthermore, the accused also acquired plots in Kansal, Chandigarh; Dhakoli, Zirakpur; and Khudal Kalan, Mansa. In addition to these transactions, he had invested a sum of ₹1.32 crore in two developer firms under his son’s name.
The high court order came during the bail plea of one of the accused.
“Further investigation is required to find out if there was any difference in the market rates and circle rates, and the rates shown in the sale deeds. Needless to say, the ground reality is that market rates are at times higher than the circle rates, which some of the corrupt, inefficient or incompetent revenue officials deliberately keep low to facilitate the adjustment of illicit, undeclared, black and crime money. How much illicit money was paid in the land purchased in the firm’s name also needs further investigation,” the bench of justice Anoop Chitkara observed.
As per VB, Balaji Infra Buildtech had carried out projects in Zirakpur when Girish was the EO of the local civic body and in 2019, his son also became a partner in the firm.
Source of funds to purchase the land were shady, the VB had claimed. It had also stated that pattern of transactions showed the “malicious intent to launder the ill-gotten money”.
As per vigilance, Girish would initially take loan to justify purchase of commercial/residential land in the name of his wife and son. Subsequently, he would repay the loan amount in cash using unaccounted/tainted money obtained by him through unfair means, the bureau had claimed.
The court took note of financial transactions that took place between Girish’s son and Ashish Sharma, one of the partners in the realty firm.
The court said it was not dealing with a prosecution under the Prevention of Money Laundering Act, 2002, under which prosecution was needed because of the massive amount of “illicit money” traced in the predicate offence. Hence, it has directed that the file regarding this case be sent to the DGP who would either examine it himself or depute a senior officer to ascertain whether a money laundering probe is required.