Gujarat High Court quashes Income Tax department move to attach PPF accounts of Jignesh Bhajiyawala

  • | Wednesday | 19th September, 2018

In a relief for Jignesh Bhajiyawala, the Gujarat High court on Tuesday quashed a direction by the Income Tax department to attach 15 PPF accounts of the businessman. The agency had accused Bhajiyawala of converting Rs1.02 crore of unaccounted money into high denomination currency immediately after demonetisation came into force. The petition said that the statements made by Bhajiyawala was made under duress and that he had retracted it. It also clarified that the agency cannot attach his Public Provident Fund account as these accounts gets protection under section 9 of the Public Provident Fund Act, 1968. Bhajiyawala and his father had been booked by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).

In a relief for Jignesh Bhajiyawala, the Gujarat High court on Tuesday quashed a direction by the Income Tax department to attach 15 PPF accounts of the businessman. It also clarified that the agency cannot attach his Public Provident Fund account as these accounts gets protection under section 9 of the Public Provident Fund Act, 1968. In a SCA filed before the high court, the petitioner had alleged that the tax officials lured them to make certain self incriminating statements by stating that they would fasten only civil tax liability and would not have to undergo any criminal proceedings or prosecution. The petition said that the statements made by Bhajiyawala was made under duress and that he had retracted it. The petition had stated that due to the Income Tax departments action the petitioner had been prevented from withdrawing accounts that had matured and this was causing huge loss to his family and family members. It further argued that the PPF accounts are protected against attachment against any debt or liability. It also argued that Bhajiyawala could not challenge the order of the department at the time it was made because he had been arrested soon after and had filed it when he was granted bail. Bhajiyawala and his father had been booked by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA). The agency began investigation against the duo on the basis of a FIR filed by CBI, Gandhinagar. The agency had accused Bhajiyawala of converting Rs1.02 crore of unaccounted money into high denomination currency immediately after demonetisation came into force. It was alleged that he did it in collusion with officials of private and public sector bank with the help of forged documents. In a second charge sheet filed before the PMLA court the agency had said that he had demonetised another Rs3.72 crore in 67 different bank accounts without the knowledge of the account holders. Bhajiyawala was arrested on money laundering charges on January 19 2017.

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