NIA special court orders transfer of seized cash to income tax department

In a significant development, the special court of the National Investigation Agency (NIA), Mohali ruled on Wednesday that the cash recovered from an alleged hawala operator would be transferred to the custody of the Income Tax (IT) department.

Special NIA judge Manjot Kaur, while disposing of an application, stated, “In view of the averments made in the application as well as no objection given by the NIA, the application in hand stands allowed and custody of the seized amount of Rs 1,58,75,050 is ordered to be transferred to the applicant Deputy Director of Income Tax, as per rules.”
The application seeking custody of the cash was filed by Akshay Anand, Deputy Director of Income Tax.

Kanhaiya Singhal, Special Public Prosecutor for the Income Tax Department, argued that the NIA had seized an amount of Rs 1,58,75,050 during a search conducted at the office premises of Rajubhai Prahladbhai Patel Ltd, Chandni Chowk, Delhi, on February 21, 2023. The Income Tax Department highlighted that despite sufficient opportunities, the claimant failed to provide satisfactory explanations regarding the source of income for possessing the seized cash.

Urfi Masood Syed, public prosecutor, elaborated on the findings of the investigation, revealing that Raju Bhai Patel, the subject of the case, could not adequately explain the legitimate source of the cash found at his premises. Subsequent scrutiny indicated Patel’s involvement in facilitating illegal transactions as a hawala operator.
The court’s decision to transfer the seized cash to the Income Tax Department comes after a previous dismissal of an application by Raju Bhai Patel for the release of the funds on October 23, 2023.

The ruling marks a significant step in the ongoing investigation into alleged hawala operations and underscores the collaborative efforts between law enforcement agencies to combat financial crimes effectively.