Chhattisgarh: Enforcement Directorate attaches IAS officer's property worth Rs 36 crore
Babulal Agrawal had opened approximately 446 benami accounts to launder money, which he used to channelise into shell companies.
In Short
- ED seizes property worth Rs 36 crore of Chhattisgarh cadre IAS Babulal Agrawal.
- Babulal had opened approximately 446 benami bank accounts to launder money.
- Funds were moved from benami bank accounts to 13 shell companies, operated by Babulal's CA.
The Enforcement Directorate (ED) has seized movable and immovable properties worth Rs 36.09 crore belonging to senior IAS officer Babulal Agrawal. Agrawal was former Chhattisgarh principle secretary.
The Central Bureau of Investigation had registered two cases against Babulal in 2010. One of those was of impersonation and other was of cheating and disproportionate assets (DA). During the same period the income tax authorities had conducted searches on the premises of Babulal and his Chartered Accountant (CA) Sunil Agrawal.
On the basis of the searches, the Economic Offences Wing, Chhattisgarh Police registered a DA case against Babulal Agrawal. Later Enforcement Directorate started investigation under Prevention of Money Laundering Act (PMLA), to unearth the financial trail of crime.
MODUS OPERANDI ADOPTED BY BABULAL
Babulal used to open several accounts in the names of the unsuspecting villagers and then submit cash deposits in the said accounts.
These cash deposits were further channelised into shell companies as share application money and thereafter the shell companies invested the said black money as equity at a large premium in Prime Ispat Limited, a company owned by brothers of Babulal Agrawal.
These equity shares belonging to the shell companies were then purchased by sister concerns of Prime Ispat Ltd, thus leaving the control of the entire black money with Babulal Agrawal and his brothers. This black money was used for investment in factory building, land, machinery and immovable properties belonging to Prime Ispat Limited.
As per the investigation, during the period of 2006-08, Babulal Agrawal with the help of his Chartered Accountant had opened 446 benami bank accounts in the names of unsuspecting villagers of Kharora and nearby villages with Union Bank of India, Pandri Branch and Ramsagarpara branch, Raipur. With the active connivance of the bank officials, they opened the said bank accounts even though none of the account holders did come to the bank in person for verification of their signatures, thereby flouting all Know Your Customer (KYC) norms.
Funds were moved from the benami bank accounts to 13 shell companies, operated by Sunil Agrawal, by way of investment by the benami account holders in the equity shares of the said 13 shell companies at huge premium even though the shell companies did not have any operational income. In total the 13 shell companies received investment in its equity to the extent of Rs 39.67 crore.
PROPERTY SEIZED BY ED
After thorough investigation Enforcement Directorate has attached 70.78 acres of land worth Rs 4.40 crore, plant and machinery valued at Rs 23.89 crore, factory building worth Rs 7.07 crore and a Toyota Innova belonging to Prime Ispat Limited. Also, a house of worth Rs 55 lakh and a plot of land of worth Rs 4.61 lakh belonging to Babulal Agrawal are attached.
Meanwhile, in an another crackdown, two persons Dhanjay Reddy and Liaqat Ali were arrested from Chennai. Both of them had formed a number of shell companies.
Dhanjay Reddy had sent money abroad from a loan he had acquired on forged papers. While Liaqat has shown import and export transactions on papers, the transactions never took place.
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