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Chhagan Bhujbal associate floated 700 shell companies

According to the residents of La Serena Building on J P Road, Andheri West, Mumbai, Purohit left his residence an hour before the search began on Saturday morning.

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As part of a nationwide crackdown on shell companies used in money laundering, the Enforcement Directorate (ED) on Saturday morning searched the Andheri residence of Jagdish Prasad Purohit. He is accused by the agency of being a close associate of Nationalist Congress Party (NCP) leader Chhagan Bhujbal, and had helped the minister launder kickbacks in the Maharashtra Sadan scam. 

According to the ED, Purohit has admitted that he had formed around 700 shell companies using 20 dummy directors, and that out of these, 130 companies are still in existence. He had also provided ‘accommodation entry’ to the tune of Rs 46.7 crore to Bhujbal. 

According to the residents of La Serena Building on J P Road, Andheri West, Mumbai, Purohit left his residence an hour before the search began on Saturday morning. 

Residents woke up to news of ED raids at their neighbhour’s apartment. There are 42 flats in the building, and Purohit has been residing in flat number 1301 on the third floor for the past six years. When DNA visited the flat, an ED officer and her six subordinates were checking account books, computer, laptops and other documents seized from the apartment. 

Sunil Dalvi, Chairperson of the La Serena apartments, said, “We were shocked to hear about the raid. Some years ago, we had witnessed a raid by the Income Tax department in the same wing at the residence of a man who was serving as a manager in a multi-national company.” 

ED officials reached the apartment at 9am and left at 7pm. They seized documents related to lockers of various banks which will be searched by the ED on Monday. A neighbour, who did not wish to be named, said,”The family was very co-operative and helpful to us, and they were peace-loving people. They had the most number of visitors in the entire building.”

A senior ED officer said, “Purohit managed to leave before we reached his residence. We are investigating the role of Purohit in forming shell companies to launder money. We have found documents of some companies and we are verifying if these were shell companies use to launder money. We have found a hard disc from the apartment which we will be scrutinising.”

Purohit has been named by the ED in an 11,000-page charge sheet filed by the agency in March 2016 in a money laundering case against former Deputy Chief Minister and NCP leader Chhagan Bhujbal, his nephew Sameer and son Pankaj, and others. 

According to ED sources, Purohit had floated hundreds of shell companies, conspired with Bhujbal and helped divert the kickbicks allegedly received by him in the Maharashtra Sadan scam through their shell companies.

An ED officer, on condition of annonymity, said that the firms run by Purohit such as Kumaon Engineering Company Private Limited registered at Bhayander East in Thane district, Bajaao Music Private Limited registered at New Link road of Andheri West and JMD Broadcasting Private Limited registered in Mumbai, were being investigated. 

ED sources said that there were records of fund transfers between companies controlled by Bhujbal and Kumaon Engineering Company Pvt Ltd, in which Purohit is a director. 

According to sources, other firms under the scanner of the ED, in which Purohit is a director, include Subh Chintak Vyapaar Pvt Ltd, Sepia Venture Private Ltd, Unisys Softwares & Holding Industries Ltd, Scan Infrastructure Ltd, Nirnidhi Consultant Private Limited, Risewell Suppliers Private Limited, Reward Advisory Services Privatet Limited, Warner Multimedia Limited, Sudhalok Traders Private Limited,  Bajaao Music Private Limited, Jmd Broadcasting Private Limited and Jmd Telefilms Industries Limited registered. 

Most of these firms are registered in Kolkata, which ED sources said was a hub of shell companies used to launder money.

Fake Interpol ID

At one of the premises searched in Mumbai by the ED, a photograph of fake ID card of Special Agent, Anti-Terrorism Division, Interpol, in the name of one Chetan Shah was found on the laptop of the said person.

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