The Attorney General of Ontario sought an order for forfeiture of $163,015.29 held in a TD bank account, pursuant to the Civil Remedies Act, 2001, alleging the funds were proceeds of unlawful activity (fraud) or the account was an instrument of unlawful activity.
The account owner, Kamal Sehgal, opposed the application, asserting the funds were legitimately deposited through a Hawala system.
The court found that the majority of the funds ($141,965.29) were proceeds of unlawful activity and the account was an instrument of unlawful activity, rejecting Sehgal's explanation of a legitimate Hawala transaction due to lack of credible evidence and missing essential elements.
A portion of the funds ($21,050.29) was deemed legitimately owned by Sehgal and exempted from forfeiture, while the balance was forfeited to the Crown.
