Exclusive Investigative Report: Ajay Kumar Gupta and Astra Global Conviction in Dubai Court
A Dubai Court has sentenced Ajay Kumar Gupta along with another suspect Manoj Kumar Jain two years in prison under the Federal law on Anti Money Laundering and Combating the Finance of Terrorism and Financing the Illegal Organizations, as amended by the Federal Decree- Law No. 26 of 2021.
The Court has also ordered confiscation of AED 331,665,828.86 owned by the first and second accused. The third accused Astra Global ( body corporate).
This case was first exposed through an exclusive investigative report titled “As bribery charges fly NHAI and fertilizer business come under scanner; Money laundering not ruled out” by globally acclaimed journalist and Editor Lalit Shastri.
At the open hearing held on Wednesday, 28 August 2024, at the Dubai Court Chaired by Hassan Hussain Mohammed Rabei- a Judge in the Court; Fahed Abdul Kareem Mubarak Belzmool, Chief Prosecutor; and Mrs Sheikha Abdul Hadi Mohamed Al Hammadi- Clek, the judgement was given in the Case No. 575 of 2021- Penal, in the Fifth Misdemeanor Section, in absentia convicting each of the suspects Ajay Kumar Gupta, and Manoj Kumar Jain. They have been sentenced to two years in prison for the accusations attributed to them and to be deported from the UAE;
The Court has ordered to confiscate any funds owned by the First and Second Suspects equal to AED 331,665,828.86.
The third suspect Astra Global, has been fined five hundred thousand Dirhams for the accusations attributed to it.
Also the Court has referred the civil case to the competent civil court free of fees.
Ajay Kumar Gupta, as per available information, is in India at present. The authorities in Dubai will now seeking his extradition under a treaty signed by India.
The public prosecution charged the following Suspects – Ajay Kumar Gupta Ratan Lal Gupta; 2) Manoj Kumar Jain; and 3) Astra Global (Body corporate) As they possessed funds amounting to AED 331,665,828.86 , during the period form 2017 to 2021, withing the jurisdiction of the Bur Dubai Police Station, in the accounts of the third Suspect the Body Corporate and there were sufficient evidences of the illegality of their source in the manner proved and evidenced by the papers.
The public prosecution referred them to the Court and requested their punishment in accordance with the provisions of Articles (1, 4, 23 (1), 4, 25 bis, 26 and 29 “2”), of the Federal Decree- Law On Anti Money Laundering and Combating the Finance of Terrorism and Financing the Illegal Organizations, as amended by the Federal Decree- Law No. 26 of 2021.
The Court order has brought on record the following facts:
Whereas the subject incident is summed up that, as established in the court belief and as deduced from all the papers, investigations, trial hearings and the money laundering report on the Frist Suspect Ajay Kumar Gupta Ratan Lal Gupta, the Second Suspect Manoj Kumar Jain and the third Suspect Astra Global, owned by the First Suspect and Second Suspect. The First Suspect and Second Suspect posses in the bank accounts of the Third Suspect, in its capacity, a total amount of AED 331,665,828.86 within five years from 2017 to 2021. Sufficient evidences and proofs are found confirming the illegality of their source, as there is a relationship between the Third Suspect, in its capacity, and the family of Waleed Ismail Kurdi who was detained and sentenced to prison in 2013 on the accusation of (Corruption) abuse of office, as he participated in the phosphate sales for less prices through agents such as the third Suspect Astra Global, in its capacity. It is also noted in the suspicious transaction report No. STR24700 that there are cash transfers between Astra Global, the Third Suspect in its capacity, and Waleed Ismail Kurdi, as it has transferred an mount of AED 10,181,370 to the named Waleed Ismail Kurdi. Astra Global also received AED 9,085,686 from Jordan Phosphate Mines Co LTD (It is the company for which the named Walid Al Kurdi abused his office and manipulated in the phosphate prices) with regard to transfers related to phosphate. Moreover, Astra Global has transferred 1,649,232,050 to Jordan Phosphate Mines Co LTD for the purpose of phosphate trading. Furthermore, Astra Global has transactions with other companies involved in phosphate purchase for less prices with Jordan Phosphate Mines Co LTD and money laundering crimes. It is found during the searches with the Federal Authority for Identity, Citizenship, Customs & Port Security- General Directorate of Customs, that there are no commercial shipments for Astra companies, including Astra Global, the third Suspect, all over the country. During analysis of the bank accounts for Astra Group, it is found that there are no deductions for the purpose of salaries for the companies’ employee. This confirms that there are no actual employees and the Third Suspect, Astra Group in its capacity, is mere a mean for passing the funds in its bank accounts and exploiting the bank system in the UAE for passing suspicious funds and damaging the economic reputation of the UAE.
Whereas there is an evidence on the above incident which has been proved against the Suspects as the court satisfied with witness of Major Khalifa Khamis Saeed Al Ramzi, in the public prosecution investigations, and what is indicated in the antimony laundering report.
Major Khalifa Khamis Saeed AI Ramzi- Anti Money Laundering Department, stated in the public prosecution investigations that according to the technical report issued by the Anti Money Laundering Department and based on analysis of the personal and body corporate accounts of Astra Global group, third suspect in its capacity, owned by the First Suspect Ajay Gupta, during the period from 2009 2022, in accordance with the technical report prepared by them, that the deceased Iyer Narayan has three personal bank accounts. The first bank account with HSBC and the second with Emirates NBD and the third with ADCB. By investigation, analysis and verification of such accounts and preparation of the report, it is found that suspicious bank transactions report was previously filed by the financial institutions operating on the country on the companies related to the First Suspect Ajay Gupta based on receiving negative information from the open sources against the companies owned by him. It is confirmed, through the financial movements, that Astra Companies Group, owned by the First Suspect Ajay Gupta, are involved with the Family of Waleed Ismail Al Kurdi involved in corruption crimes with the Jordanian authorities. It is proved by the paper that the above mentioned companies are mere a mean for passing funds in their bank accounts and exploiting the bank system in the UAE for passing suspicious funds, and damaging the economic reputation of the UAE. Consequently, the First Suspect Ajay Kumar Gupta, owner of Astra Companies Group, has possessed funds and made transactions for which there are evidences and proofs to confirm that their source is illegal. After making investigation and verification by the Anti Money Laundering Department and report preparation, it is found that the total amount is approximately AED 331,665,828.86 during the last five years from 2017 to 2021, possessed by the First suspect Ajay Kumar Gupta in his personal and body corporate account of Astra Group of companies with banks in the UAE, and there are sufficient evidences and proves that their sources are illegal.
It is proved by the Anti Money Laundering Crimes Report that there are reports on the First Suspect Ajay Kumar Gupta Ratan Lal Gupta and the Second Suspect Manoj Kumar Jain, on fraud, and that the total credit transaction in Astra companies is AED 331665828.96 and the deduction amount is AED 383993414.79 and the balance of the bank accounts is AED 58303319.97, during the period of the accounts revision in 2022. Based on the suspicious transactions report made by Agricole Corporate and Investment Bank, No. STR24700, on 18/2/2016, received from the financial information unit on Astra Global, the third suspect in its capacity, it is found that there is a relationship between the latter company and the family of Waleed Ismail Kurdi who was detained and sentenced to jail in Jordon in 2013 on the accusation of corruption and abuse of office, in addition to 253.4 million Jordanian Dinar for fees and fines, as he participated phosphate sales for less prices through agents such as Astra Global, the third suspect in its capacity. It is also noted in the suspicious transaction report No. STR24700 that there are cash transfers between Astra Global, third suspect, in its capacity and Waleed Ismail Kurdi, as Astra Global has transferred AED 10,181,370 to the named Waleed Ismail Kurdi. Moreover, Astra Global received an amount AED 9,085,686 from Jordan Phosphate Mines CO LTD ([t is the company for which the named Walid Al Kurdi abused his office and manipulated in the phosphate prices) with regard to transfers related to phosphate. Furthermore, Astra Group transferred AED 1,649,232,050 to Jordan Phosphate Mines CO LTD for the purpose of phosphate trading. Furthermore, Astra Global has transactions with other companies involved in phosphate purchase for less prices with Jordan Phosphate Mines Co LTD and money laundering crimes. It is found during the searches with the Federal Authority for Identity, Citizenship, Customs & Port Security- General Directorate of Customs, that there are no commercial shipments for Astra companies, including Astra Global, the third Suspect, all over the country. During analysis of the bank accounts for Astra Group, it is found that there are no deductions for the purpose efsties for the companies’ employee. This confirms that there are no actual employees and the Third Suspect, Astra Group in its capacity, is mere a mean for passing the funds in its bank accounts and exploiting the bank system in the UAE for passing suspicious funds and damaging the economic reputation of the UAE. After following up all deposits, withdrawals and internal and external bank transfers made on the accounts off the Suspects with the banks operating in the UAE and the balances thereof, and the subsequent transfers to their bank accounts, and clearing and making cheques and cash withdrawals from the banks through the suspects, it is proved that such amounts are collected from suspicious sources. Furthermore, the transfer transactions were made for the purpose of concealing their illegal source and possessing them, and assist in this regard by the suspects. The proof is that there is no economic or commercial interest and the activities of the above-mentioned companies are almost incompatible.
At the hearing dated 26/6/2024, no one of the suspects appeared although they have been served in accordance with the law. Therefore, the court renders a judgment in their absentia in accordance with the provisions of Article 190 of the Criminal Procedures Law. Their lawyer submitted a defense brief and a docket disregarded by the court. Therefore, the court decided to set the case for judgment at the hearing dated 28/8/2024. Regarding the subject matter of the case, it is established in accordance with the provisions of Article (25 bis) ofAnti Money Laundering Law that “A penalty of imprisonment for a period not less than three (3) months and/or a fine not less than fifty thousand (50,000) AED shall be imposed on anyone who possesses, conceals or conducts any money transaction when there is sufficient evidence or presumption of the illegality of its source. Upon conviction, the court shall rule for confiscation in accordance with the provisions of Article (26) of this Law by Decree”. It is also established in accordance with the provisions of Article (4) of the Decree Law No. 26 of 2021 that “Financial, commercial and economic institutions operating in the UAE shall be criminally liable for the crime of money laundering, terrorism finance or finance of illegal organizations if committed in their names or on their account intentionally, without prejudice to the administrative penalties provided for in the law”.
Then it determines its penalty in Article 23 of the law with a penalty not less than 500 thousand Dirhams and not exceeding fifty million Dirhams. The signification of this Article is that the legislator has quoted the liability of the body corporates for the crimes of money laundering from the public principle established in accordance with the provisions of Article 65 of the Penalties Law, which provides that “Legal persons, with the exception of the government agencies and their official departments and public entities and corporations, shall be criminally liable for crimes committed by their representatives, directors or agents acting in favor of or on behalf of them. No penalty shall be imposed on them other than a fine, confiscation and the criminal measures stipulated by law; however, if the law prescribes for the crime a principal penalty other than a fine, the penalty shall be limited to the fine, not exceeding five hundred thousand Dirhams, unless the law stipulates otherwise. This, however, shall not prevent punishing the perpetrator personally with the penalties prescribed for the crime by law. The signification of this provision is that the legislator permitted liability of the body corporates, so long as the crime is committed in the name and on the account of the body corporate. Such liability is based on different conditions as follows: (1) The body corporate should be special not public, as the government federal and local entities and department and all public institutions shall not be liable; (2) the crime shall be committed by the representative of the body corporate, whether he is its representative, manger or agent; (3) the crime shall be committed on the account of the body corporate or in its name. If it is proved to the court that the body corporate is liable in this manner, the legislator limited the penalty to fine only.
In view of the above and it is proved by the money laundering report on the Frist Suspect Ajay Kumar Gupta Ratan Lal Gupta, the Second Suspect Manoj Kumar Jain and the third Suspect Astra Global, in its capacity, owned by the First Suspect and Second Suspect. The First Suspect and Second Suspect possess in the bank accounts of the Third Suspect, in its capacity, a total amount of AED 331,665,828.86 within five years from 2017 to 2021. Sufficient evidences and proofs are found confirming the illegality of their source, as there is a relationship between the Third Suspect, in its capacity, and the Family of Waleed Ismail Kurdi who was detained and sentenced to jail in 2013 on the accusation of (Corruption) abuse of office, as he participated in the phosphate sales for less prices through agents such as the third Suspect Astra Global, in its capacity. It is also noted in the suspicious transaction report No. STR24700 that there are cash transfers between Astra Global, the Third Suspect in its capacity, and Waleed Ismail Kurdi, as it has transferred an amount of AED 10,181,370 to the named Waleed Ismail Kurdi. Astra Global also received AED 9,085,686 from Jordan Phosphate Mines Co LTD (It is the comnpany for which the named Walid Al Kurdi abused his office and manipulated in the phosphate prices) with regard to transfers related to phosphate. Moreover, Astra Global has transferred 1,649,232,050 to Jordan Phosphate Mines Co LTD for the purpose of phosphate trading. Furthermore, Astra Global has transactions with other companies involved in phosphate purchase for less prices with Jordan Phosphate Mines Co LTD and money laundering crimes. It is found during the searches with the Federal Authority for Identity, Citizenship, Customs & Port Security- General Directorate of Customs, that there are no commercial shipments for Astra companies, including Astra Global, the third Suspect, all over the country. During analysis of the bank accounts for Astra Group, it is found that there are no deductions for the purpose of salaries for the companies’ employe. This confirms that there are no actual employees and the Third Suspect, Astra Group in its capacity, is mere a mean for passing the funds in its bank accounts and exploiting the bank system in the UAE for passing suspicious funds and damaging the economic reputation of the UAE. Accordingly, in accordance with the provisions of Article (213) of the Criminal Procedures Law, the suspects should be punished with the above mentioned accusation items as indicated in the judgment wording.
Regarding the confiscation set forth in Article of the Anti-Money Laundering Law No 20 of 2021, indicated hereinabove, the court satisfied that the accusation is proved against the First Suspect and the Second Suspect. Therefore, the court rules confiscation of any funds owned by the suspects equal to AED 331,665,828.86, for the value of the money collected from the crime.
Regarding the Civil Case filed by Astra Global, the court orders referral of the civil case to the competent civil court in accordance with the provisions of Article (30) of the Criminal Procedures Law.
