News Analysis India

Tag: money laundering

  • ED arrests Anil Deshmukh’s personal assistant, secretary in money laundering case after raids

    By ANI
    MUMBAI: The Enforcement Directorate (ED) on Saturday arrested former Maharashtra Home Minister Anil Deshmukh’s personal assistant Kundan Shinde and personal secretary Sanjeev Palande in connection with an alleged money laundering case.

    This comes a day after the ED raided Deshmukh’s residences in Nagpur and Mumbai. According to the ED, the raids were conducted at five places.

    Speaking to the media after the raids, Deshmukh on Friday said that former Mumbai police commissioner Param Bir Singh had made false allegations against him after he was removed from the post over his suspicious role.

    “Why did not he level allegations when he was still holding the post? You know Param Bir Singh made false allegations against me after he was removed from the post of Mumbai Police Commissioner because his role was very suspicious,” Deshmukh said.

    The ED on May 11 had registered a case of money laundering against Deshmukh. Earlier in April, the CBI had conducted raids at four premises of Deshmukh after registering an FIR against him in connection with the case.

    An FIR was filed based on Section 7 of the Prevention of Corruption Act (Public servant taking gratification other than legal remuneration in respect of an official act) and criminal conspiracy (IPC 120 B).

    Sources confirmed that during the searches, the CBI recovered incriminating documents and digital devices.

    Param Bir Singh, in his letter to Maharashtra Chief Minister Uddhav Thackeray, had alleged that Deshmukh had indulged in “malpractices” and asked suspended Mumbai Police officer Sachin Waze to collect Rs 100 crores every month.

    Waze was arrested in March in connection with the National Investigation Agency’s (NIA) probe into the case of recovery of an explosives-laden SUV near Mukesh Ambani’s house in Mumbai and the subsequent murder of Thane businessman Mansukh Hiran.

  • ‘Better to reconcile with BJP before it’s too late’: Sena MLA under ED scanner writes to Uddhav

    By PTI
    MUMBAI: Shiv Sena MLA Pratap Sarnaik, who is under the Enforcement Directorate’s scanner for alleged money laundering, has written a letter to Maharashtra Chief Minister Uddhav Thackeray appealing to him to reconcile with the BJP “before it is too late”.

    In the letter dated June 10, Sarnaik said even though the alliance with the BJP has broken, personal and harmonious relations between leaders of the ‘yuti’ (Shiv Sena-BJP) remain.

    “It is better to reconcile before it is too late,” the MLA said in the letter.

    Notably, the Sena forged an alliance with the NCP and Congress and formed the Maha Vikas Aghadi (MVA) government in Maharashtra in 2019 after the Uddhav Thackeray-led party fell out with the BJP.

    Shiv Sena MLA @PratapSarnaik writes CM Uddhav Thackeray asking patch up wid BJP once again. He said their families r unnecessary troubled by central probe agencies; once Sena BJP alliance govt is in Maharashtra, then they & their families will have major relief. @NewIndianXpress pic.twitter.com/yBdnoHtxUW
    — Sudhir Suryawanshi (@ss_suryawanshi) June 20, 2021

    In November last year, the Enforcement Directorate (ED) raided premises linked to Sarnaik in Maharashtra in connection with a money laundering case being probed against a security service provider company and others.

    ALSO READ | MVA alliance for 5 years, not permanent fixture: Congress

    The Shiv Sena had called the raids a “political vendetta” and said the Maharashtra government or its leaders will not surrender to pressure from anyone.

    Noting that municipal corporation polls are due soon in several Maharashtra cities, including Mumbai, Sarnaik in his letter to the CM said, “I believe fighting a war like Arjun, instead of sacrificing oneself like Abhimanyu or Karna. This is the reason that I have been fighting my legal battle for the last seven months alone without getting any help from our leaders or our government .”

    Sarnaik, who is an MLA from neighbouring Thane district, also alleged that the Congress and NCP were creating divisions in the Shiv Sena ranks.

    “It is better to join hands with Prime Minister Narendra Modi again as Shiv Sainiks feel that would save the Sena leaders like me, Anil Parab and Ravindra Waikar from problems,” he said.

    Notably, former BJP MP Kirit Somaiya had accused the three Sena leaders of indulging in corrupt practices.

    Sarnaik, in his letter, did not name Somaiya, but said a leader “who has become a ‘former MP’ because of the Sena” is maligning the party.

    Sarnaik also claimed that Shiv Sena MLAs feel only the work of Congress and NCP legislators is being done and not of those from his party.

    “Shiv Sena MLAs wonder whether the MVA has been formed, by breaking the alliance with the BJP, to help the Congress and NCP grow,” he said.

    Sarnaik also said in the letter that while CM Thackeray was focusing only on COVID-19 eradication, the Congress was talking of going alone in next elections and the NCP was busy “breaking” Shiv Sena workers and inducting them into the Sharad Pawar-led party.

    Meanwhile, reacting to Sarnaik’s letter, Somaiya said the Sena MLA seems to be worried about jail now and so, he has asked CM Thackeray to join hands with PM Modi and the BJP.

    “All corrupt leaders of the Shiv Sena – Pratap Sarnaik, Anil Parab, Ravindra Waikar – will have to be in jail,” the BJP leader said in a statement.

    Somaiya also said he had lodged a complaint at a police station in Thane about Sarnaik “missing” for last 100 days. 

  • ED summoning Mehbooba part of Centre’s ‘vindictive’ politics: PDP

    The 60-year-old PDP leader, who was released last year after more than a year in detention following the scrapping of Jammu and Kashmir #39;s special status, has been served notice to appear at the ED HQ

  • Money-laundering case: ED files chargesheet against ex-Haryana CM Hooda, 4 retd IAS officers

    Express News Service
    CHANDIGARH: Former Haryana Chief Minister Bhupinder Singh Hooda and 21 others, including four retired IAS officers, were named as accused by the ED in its charge sheet in connection with alleged irregularities in the allotment of 14 industrial plots at Panchkula.

    A charge-sheet was filed before a special PMLA court in Panchkula on the charges of money laundering, punishment for money laundering, and other offences.

    Sources said that Hooda was chairman of the Haryana Urban Development Authority (HUDA) during which he allegedly allotted the plots ranging from 496 sq m to 1,280 sq m at throwaway prices after making changes in the eligibility criteria.  

    As the plots were allotted plots at lesser prices than the prevailing market rates, causing financial loss to the tune of several crores of rupees to the state exchequer.  

    The allotments were made by HUDA in July 2013 and approved by the former CM as its chairman on the recommendation of a standing committee. The ED had initiated investigation in 2015 based on an FIR by the Haryana vigilance bureau.

    Former chief administrator of Haryana Urban Development Authority (HUDA) DPS Nagal, former administrator HUDA Surjit Singh, former HUDA chief finance controller SC Kansal, former HUDA deputy superintendent BB Taneja and two firms are among the accused.

    In its investigation, the ED probe found that the price fixed for the subject allotment were kept four-five times below circle rate and about eight times the market rate.

    The agency also stated that the criteria for allotment were altered 18 days after the last date of application to favour the pre-selected applicants by increasing the discretion at the hands of the interview committee.

  • PMC Bank fraud: Enforcement Directorate arrests two after raids against Maharashtra MLA

    By PTI
    MUMBAI: The Enforcement Directorate has arrested two people following raids on the premises of a firm promoted by a Maharashtra MLA for alleged “illegal diversion of bank funds” in the Rs 4,300-crore PMC Bank fraud and money laundering case, official sources said on Saturday.

    On Friday, the agency searched five residential and business premises linked to the Viva Group, promoted by Bahujan Vikas Agadhi (BVA) party chief and MLA Hitendra Thakur, its associates and two of its financial consultants in the Vasai-Virar area of Maharashtra’s Palghar district and Andheri, Juhu and Chembur suburbs of Mumbai, the sources said.

    Mehul Thakur, managing director of the Viva Group, and Gopal Chaturvedi, a chartered accountant, were arrested under sections of the Prevention of Money Laundering Act (PMLA) after the raids.

    Action was taken against the two as they were allegedly not cooperating in the investigation.

    The ED will now seek their custody when they are produced before a local court in Mumbai on Saturday, the sources said.

    Rs 73 lakh cash, incriminating digital and documentary evidences were recovered during the operation.

    Thakur’s party had pledged the support of its three MLAs, including his legislator son Kshitij Thakur, to the Maha Vikas Aghadi (MVA) government led by Shiv Sena chief and Maharashtra chief minister Uddhav Thackeray.

    The NCP and the Congress are also part of the MVA.

    The central agency has filed a criminal case of money laundering to probe the alleged loan fraud in Punjab and Maharashtra Co-operative (PMC) Bank in October 2019 against Housing Development Infrastructure Ltd (HDIL), its promoters Rakesh Kumar Wadhawan, his son Sarang Wadhawan, its former chairman Waryam Singh and ex-managing director Joy Thomas.

    It took cognisance of a Mumbai Police economic offences wing FIR against them that charged them with causing “wrongful loss, prima facie to the tune of Rs 4,355 crore to PMC Bank and corresponding gains to themselves”.

    The raids were conducted to collect more evidence after it was found that the “Wadhawans in connivance with Viva Group have diverted more than Rs 160 crore from HDIL to many companies and entities belonging to Viva Group in the garb of commission”.

      “Source of these funds from HDIL to Viva Group is apparently the illegal fund diversion from PMC Bank,” the ED claimed in a statement issued on Friday.

    The agency said in a statement that it is also probing another instance involving the searched firm where the Wadhawans allegedly siphoned Rs 200 crore loan sanctioned by Yes Bank to a company called Mack Star Marketing Pvt Ltd.

    “This loan was siphoned by the Wadhawans by showing it for fictitious purpose,” it said.

    Yes Bank, its promoters and executives are being probed by the ED as part of a separate money laundering case linked to sanction of illegal loans to various entities.

    The ED had earlier questioned Varsha Raut, the wife of Shiv Sena MP Sanjay Raut, in the PMC case for alleged transfer of Rs 55 lakh suspect funds as “interest free loan” into her account by Madhuri Raut, the wife of Pravin Raut, another accused in the case.

  • PMLA: Bail of Shiv Sena MLA Pratap Sarnaik’s ‘associate’ Amit Chandole rejected

    By PTI
    MUMBAI: A special PMLA court in Mumbai on Saturday rejected the bail plea of Amit Chandole, an alleged associate of Shiv Sena MLA Pratap Sarnaik, in a money laundering case lodged by the Enforcement Directorate.

    Chandole was arrested in November last year under the Prevention of Money Laundering Act in a case involving a firm providing security services and others.

    His bail plea was rejected by special PMLA Judge A A Nandgoankar, though the detailed order had not been made available as yet.

    The ED has said it is probing alleged suspicious dealings of Chandole, Sarnaik, security service providing firm Tops Group and its promoter Rahul Nanda, all of whom have denied the allegations.

  • ED arrests former Rajya Sabha TMC MP KD Singh in money laundering case

    By PTI
    NEW DELHI: The Enforcement Directorate has arrested former TMC MP K D Singh in a money laundering case, official sources said on Wednesday.

    They said Singh has been placed under arrest under sections of the Prevention of Money Laundering Act (PMLA).

    The Trinamool Congress (TMC) party is led by West Bengal Chief Minister Mamata Banerjee and Singh is stated to be not involved in the party affairs for quite some time.

    The central probe agency had carried out searches at the premises of Singh and those linked to him in September, 2019 in connection with two PMLA cases.

    Singh has been the chairman of the Alchemist group and while he resigned from the post in 2012, he is stated to be the Chairman, Emeritus and founder of the business group.

    The ED is probing him as part of two money laundering cases.

  • ED arrests key accused Sai Chandrasekhar in Rs 750 crore Bush Foods bank fraud case

    The Enforcement Directorate (ED) has arrested key accused Sai Chandrasekhar in an economic offence case involving ₹750 crore. The special money laundering court has also given seven-day custody to the investigative agency.

    The Central agency produced the accused Sai Chandrasekhar before Saket district and sessions court and got the remand for custodial interrogation. Earlier search operation was conducted at the residential and office premises of the accused.

    ED initiated investigation under PMLA against Virkaran Awasty, Vinod Sirohi, KPMG India Pvt. Ltd. and others based on FIR registered by Economic Offence Wing, Delhi Police on basis of a complaint received from Hassad Netherlands B.V. and consequently filed charge sheet.

    Hassad Netherlands B.V., a subsidiary of Hassad Food Company, was induced by Virkaran Awasty and Ritika Awasty, Directors of Bush Foods Overseas Pvt. Ltd., to part with funds amounting to $ 120 million (approximately Rs 750 crore) by misrepresenting the level of stocks and inventory.

    On the basis of such misrepresentations the accused persons induced Hassad Netherlands B.V. to provide corporate guarantee for the outstanding amount of Rs 714 crores of credit facilities availed from the consortium of banks.

    Credit facilities were availed by Bush Foods Overseas Pvt. Ltd. on the basis of non-existent stocks or inventory.

    Investigation under PMLA revealed that Virkaran Awasty along with other directors created bogus stocks by inflating the inventory and fabricating financial statements of the company.

    Investigation under PMLA revealed that Virkaran Awasty along with other directors created bogus stocks by inflating the inventory and fabricating financial statements of the company. Bulk transactions of sales and purchases were generated in order that Bush Foods could record increased turnover, profit margins and additional stock by generating approximately equal value of sales and purchases in a year. Artificial profit and artificial stock in the book value of inventory was recorded in the books by showing these bulk sales as domestic sales.

    Sai Chandrasekhar was an employee of Hassad Foods Company and was part of team which evaluated the transactions. Sai Chandrasekhar colluded and conspired with Virkaran Awasty to cheat Hassad Netherlands. He had a pivotal role and responsibility in the business transactions between M/s Bush Foods Overseas Pvt. Ltd. and Hassad Netherlands B.V.

    He also had a key role in negotiations, discussion and due diligence carried out by Hassad on Bush Foods. In lieu of manipulating the due diligence exercise in favour of M/s Bush Foods Pvt. Ltd. and knowing that the credentials of the company were not genuine and facilitating the transactions, Sai Chandrasekhar was paid illegal gratification by Virkaran Awasty to the tune of Rs. 20.79 crores.

  • Money laundering case: Interpol issues global arrest warrant against Nirav Modi’s wife

    He said that on the request of the Enforcement Directorate (ED), the global police body Interpol has issued a ‘Red Notice’. Once such notice is issued against the fugitive, Interpol asks its 192 member countries to arrest or detain the person when he is seen in their countries. Extradition or deportation proceedings can then begin. It is believed that Amy Modi left the country soon after the alleged case of bank fraud came to light in 2018.
    The ED has slapped Amy Modi with her husband Nirav Modi, besides her relative Mehul Choksi and others under the Prevention of Money Laundering Act (PMLA). Nirav Modi (49) is currently in a UK jail after being arrested in London in March 2019. Earlier this year, a Mumbai court declared him a fugitive economic offender and ordered the confiscation of his properties.

    The ED has already seized assets worth about Rs 329 crore belonging to Nirav Modi. The ED is investigating Nirav Modi, Choksi and others on charges of money laundering in connection with an alleged fraud of over two billion dollars at a PNB branch in Mumbai.

    Let us know that earlier in the month of July, judicial custody of fugitive diamond businessman Nirav Modi in Britain was extended till August 6. Modi is facing trial for extradition to India here. Nirav was introduced through a video conference before a UK court on 6 August. After this, the custody period of Nirav Modi was further extended till 27 August. The 49-year-old diamond businessman has been lodged in Wandsworth Prison in south-west London since his arrest in March last year. 

    Significantly, Nirav has committed fraud of nearly two billion dollars with Punjab National Bank (PNB). Various investigative agencies in India have registered cases against him, in this case Modi’s aide Mehul Choksi is also wanted in India.

    The second round of hearing in the extradition case of Nirav is to begin from September. The four-day hearing of the first phase in the case was held in May under the chairmanship of District Judge Samuel Gooje. Later, due to the lockdown, his second round of five-day hearing is scheduled for September 7.

  • Aircel-Maxis case: CBI informs Delhi court it has procured sanction to prosecute Chidambaram

    The CBI Monday informed a Delhi court that it has procured the requisite sanction from the authorities concerned to prosecute former Union minister P Chidambaram in the Aircel-Maxis case.

    The court however extended till December 18 the protection granted to Chidambaram and his son Karti from arrest after the Central Bureau of Investigation (CBI) said it needed two weeks to get sanction against other accused in the case.

    The CBI is probing alleged irregularities in grant of FIPB approval in Aircel-Maxis deal, while the ED is probing alleged money-laundering related to the deal.