ED Arrests PMLA Man in Rs 750 Crore Bank Loan Fraud

The Enforcement Directorate arrested a person in a money laundering case linked to alleged fraud on a 750 crore rupee bank loan committed by abusing credit facilities, the agency said on Saturday. central survey.

He said Sai Chandrasekhar was arrested on Friday under the Prevention of Money Laundering Act, after which a local court sent him to seven days in police custody.

The money laundering case against Chandrasekhar concerns an investigation initiated by the agency against Virkaran Awasty, Vinod Sirohi and KPMG India Pvt Ltd, he said in a statement.

The PMLA case was brought against them after investigating an FIR registered by the Economic Offenses Wing (EOW) of the Delhi Police Force on the basis of a complaint received from Hassad Netherlands BV.

Hassad Netherlands BV, a subsidiary of Hassad Food Company, was ‘instigated’ by Virkaran Awasty and Ritika Awasty, directors of Bush Foods Overseas Pvt Ltd, to part with funds amounting to $ 120 million (around Rs 750 crore ) by distorting the stock / inventory level, alleged the ED.

“On the basis of these false statements, the defendants instigated Hassad Netherlands BV to provide a corporate guarantee for the unpaid amount of Rs 714 crore of credit facilities used by a consortium of banks.

“Credit facilities have been used by Bush Foods Overseas Pvt Ltd on the basis of non-existent inventory and inventory,” the agency said.

The investigation revealed that Virkaran Awasty and other directors created fake stocks by inflating inventory and fabricating the company’s financial statements.

“Wholesale sales and purchase transactions were generated so that Bush Foods could record increased sales, profit margins and additional inventory by generating approximately equal value of sales and purchases in one year. .

“The artificial profit and the artificial stock in the book value of the inventory were recorded in the books by showing these bulk sales as domestic sales,” he alleged.

Chandrasekhar, he said, was an employee of Hassad Foods Company and part of the team that evaluated the transactions.

The agency accused Chandrasekhar of “colluding and conspiring” with Virkaran Awasty to “cheat” Hassad Netherlands.

“Chandrasekhar has played a central role and responsibility in the business transactions between Bush Foods Overseas Pvt Ltd and Hassad Netherlands BV. He also played a key role in Hassad’s negotiations, discussions and due diligence on Bush Foods”, did he declare.

Chandrasekhar received an “illegal gratuity” of Rs 20.79 crore by Virkaran Awasty for manipulating the due diligence exercise in favor of Bush Foods Pvt Ltd, despite knowing the company credentials were not genuine, said the general manager.

Chandrasekhar acquired a property located in the Indiranagar region of Bengaluru valued at Rs 5.8 crore, the amount of which was transferred by Virkaran Awasty from his company V&R Overseas.

“Chandrasekhar also received 1 crore of the proceeds of crime on his father’s and mother’s account from Virkaran Awasty, which was spent on his father’s medical treatment,” he said.

Chandrasekhar also got 13.79 crore rupees from Virkaran Awasty in his Dubai-based company Harin Ventures Limited, he said.

The agency said it had seized Chandrasekhar’s assets in Bangalore and Mumbai and bank balances worth Rs 7 crore in the past.

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