New releasesNews

Banking And Negotiable Instruments – Law and Practice

by P. Vasantha Kumar

Overview:

The learned author has written the book with the objective to make the non-law and non-commerce readers grasp the subject-matter with ease. A thorough and up-to-date exposition of the law and practice of banking. The author has put forth in this work, his intense and deep study of the subject of Banking Law and his 30 years of experience in the banking industry.

 The book is divided into nine parts. The author has used short sentences, brief paragraphs and numbered lists to highlight key points for a more comprehensive and complete understanding of the subject matter.

Notable features include:

  1. Discusses at length banking law’s interaction with FEMA and Insolvency and Bankruptcy Law in separate chapters.
  2. Important topics of Customer Service, KYC, Negotiable Instruments and Payment Systems are discussed in detail.
  3. Discusses the details regarding RBI regulations on FEMA, 1999.
  4. The topic of “Operational Risk” is explained in detail with examples.
  5. Details of Insolvency and Bankruptcy Code, 2016, Banking Regulation Act, 1949 has been discussed in separate chapters.
  6. Provides paraphrased Court rulings for easy understanding of law points.
  7. Written in simple and lucid manner.

Bonus Feature: Two informative articles by Industry Leader Pramod Rao: 

  • “How Banking Business Works: A Banking Lawyer’s perspective” and
  • “Bounced Cheques: A commercial Problem needs a Commercial Solution”

Get your copy here:

Banking And Negotiable Instruments – Law and Practice by P. Vasantha Kumar

New releasesNews

EBC’s Master Guide To All India Bar Examination

Overview:

This is a comprehensive Guide for All India Bar Examination conducted by the Bar Council of India. This Guide has been prepared based on the examination patterns over a period of time.

The following are some of the unique features of this Guide:

  • Authoritative commentary on all the prescribed subjects in one compact volume.
  • Includes the latest case laws and statutory amendments, viz. Sabarimala caseAadhaar caseGuidelines for court functioning through video conferencing during Covid-19 pandemicre; Criminal Law (Amendment) Act, 2018; Specific Relief (Amendment) Act, 2018; Negotiable Instruments (Amendment) Act, 2018; Personal Laws (Amendment) Act, 2019; Muslim Women (Protection of Rights on Marriage) Act, 2019; Constitution (Application to Jammu and Kashmir) Order, 2019; J&K Reorganisation Act, 2019; Constitution (104th Amendment) Act, 2019; Code on Wages, 2019 and many more.
  • Includes over 2300 exam-styled multiple choice questions along with answers.

This Guide covers the following subjects:

Constitution of India

Penal Code

Criminal Procedure Code

Civil Procedure Code with Limitation Act

Evidence Act

Contract Act

Specific Relief Act

Transfer of Property Act

Negotiable Instruments Act

Family Law

Law of Tort (Including Motor Vehicles Act and Consumer Protection Law)

Public Interest Litigation

ADR including Arbitration

Administrative Law

Company Law

Environmental Law

Cyber Law

Intellectual Property Law

Labour Law

Professional Ethics (Including cases of Professional Misconduct under Bar Council of India Rules)

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

Taxation Law

This Guide is indispensable for law graduates appearing for All India Bar Examination.


Buy Your Copy Soon!

ALL INDIA BAR EXAMINATION

Case BriefsHigh Courts

Orissa High Court: S.K. Panigrahi, J., while addressing a matter with regard to money laundering by way of ponzi schemes, stated that,

“Act of money laundering is done in an exotic fashion encompassing a series of actions by the proverbial renting of credibility from the innocent investors.”

Petitioner has sought bail in a complaint case pending before Sessions Judge, Special Court under PMLA.

Cheating

Case under Sections 406, 420, 468, 471 and 34 of Penal Code and Sections 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 was registered on the basis of a complaint alleging that the complainant had been cheated and defrauded by alluring to invest Rs 10,000 in the attractive investment scheme of Fine Indiasales (P) Ltd.

Complainant further submitted that he had introduced 20 more people to invest in the said scheme.

Complainant neither received the financial product nor the product voucher as per the agreement with FIPL.

FIPL collected huge amounts of money from the public and ultimately duped huge amount from innocent public by giving false assurance of high return for their deposit of money.

In view of the above, complainant requested for an investigation.

FIPL floated a fraudulent scheme

According to the investigation it was found that, FIPL had floated a fraudulent scheme with a terminal ulterior motive to siphon off the funds collected from public.

Ponzi Scheme

The advertised scheme of FIPL, ex-facie appeared to be a bodacious Ponzi scheme, inducing the susceptible depositors by way of misrepresentation, promising immediate refund in case of any default and timely payment of return on the part of FIPL.

Investigation prima facie established that the accused persons connected with  FIPL not only criminally conspired and cheated the depositors but also lured them into the scheme with a rogue mindset.

Machiavellian Layering | Shell Companies

Investigation revealed that the said money, stained with the sweat, tears and blood of multitudes of innocent people has since been moved around and subjected to Machiavellian layering through a myriad of shell companies and bogus transactions.

The collected amount was immediately transferred to different bank accounts of individuals as well as firms under the management and control of the Promotors/Directors/Shareholders of the said FIPL which is nothing but an act of sheltering.

Money Laundering

Modus Operandi adopted while transferring the prodigious sum of ill-gotten wealth with the singular intention of concealing the original source of funds and to project the tainted money as untainted ex facie constitute the offence of money laundering.

Court’s Observation

On the cursory look, Court prima facie observed that dishonesty, untruth and greed eroded the faith of common investors.

One of the significant stages of money laundering is “layering”, and in the present case, multiple use of corporate vehicles was done and the amount was layered further.

The act money laundering involves the process of placement, layering and integration of “proceeds of crime” as envisaged under Section 2 (u) of the Act, derived from criminal activity into mainstream fiscal markets and transmuted into legitimate assets.

“…laundering of tainted money having its origins in large scale economic crimes pose a solemn threat not only to the economic stability of nations but also to their integrity and sovereignty.”

Proceeds of Crime

Petitioner along with others attempted to project the “proceeds of crime” as untainted money by transferring the same to different bank accounts in a bid to camouflage it and project it to be genuine transactions.

Financial Terrorism

Bench added to its analysis that, offence of money laundering is nothing but an act of “financial terrorism” that poses a serious threat not only to the financial system of the country but also to the integrity and sovereignty of a nation.

Supreme Court’s opinion

Supreme Court of India has consistently held that economic offences are sui generis in nature as they stifle the delicate economic fabric of a society.

Faustain bargain

Perpetrators of such deviant “schemes,” including the petitioner in the present case, who promise utopia to their unsuspecting investors seem to have entered in a proverbial “Faustian bargain” and are grossly unmindful of untold miseries of the faceless multitudes who are left high and dry and consigned to the flames of suffering.

Reputational Damage of the Country

Abuse of financial system in the manner that occurred in the present case can inflict the reputation of the country in the world of business and commerce.

Alleged offence of money laundering committed by the petitioner is serious in nature and the petitioner’s role is not unblemished.

Hence, Court refused bail to the accused/petitioner. [Mohammad Arif v. Directorate of Enforcement, Govt. of India, 2020 SCC OnLine Ori 544 , decided on 13-07-2020]


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