Ex-MLC under lens for 10,000cr 'black money'

NEW DELHI: Spelling trouble for powerful former Saharanpur MLC Mohammad Iqbal of BSP, the Centre on Monday told the Supreme Court that the Serious Fraud Investigation Office, Enforcement Directorate and income tax department had launched separate inquiries into allegations that he had amassed Rs 10,000 crore in black money and floated 111 shell companies to launder it.

The case landed in court after businessman Ranvir Singh filed a PIL accusing Iqbal of opening shell companies at home and abroad with nominal capital, which then showed income in crores. Iqbal, in turn, alleged that his term in the legislative council was ending and as polls were drawing near, the charges were a bid by a political rival to defame him. Calling the case a "turf war", the court asked the Union finance secretary to examine the charges and counter-charges and decide the course of investigation.

On Friday, additional solicitor general Maninder Singh submitted a preliminary ED probe status report in court, saying it was probing possible violations of the anti-money laundering act and Foreign Exchange Management Act.

A bench of CJI T S Thakur and Justices A K Sikri and R Banumathi asked the central agencies probing the allegations against former MLC Mohammad Iqbal of Saharanpur to file fresh status reports by April 25.

The ED affidavit submitted in court on Monday said, "During the course of investigation into the National Rural Health Mission (NRHM) scam, the ED had found certain evidence linking Iqbal to the scam. The investigation with regard to PMLA as well as FEMA is in progress. The report of investigation carried out so far shall be submitted in sealed cover before the SC."

Iqbal also alleged that complainant Ranvir Singh had been caught and fined several times to the tune of Rs 3 crore for illegal sand mining.