The agency is also looking into Agarwal's dealings with Bharti's husband's company, Mishail Packers and Printers Pvt Ltd. Bharti is under scanner for suspected tax evasion
The Enforcement Directorate (ED) arrested Chartered Accountant Rajesh Agarwal, who is linked with Lalu Prasad's daughter Misa Bharti's companies and other politicians, in an ongoing money laundering case involving two Delhi-based brothers. Agarwal was acting as a mediator between people possessing illegal money and Jain brothers, who were earlier arrested under the provisions of the Prevention of Money Laundering Act (PMLA). He was produced in the city court on Tuesday where he was sent to three days' police custody.
The agency is also looking into Agarwal's dealings with Bharti's husband's company, Mishail Packers and Printers Pvt Ltd. Bharti is under scanner for suspected tax evasion.
He was nabbed for routing funds for Jain Brothers Virendra and Surendra, who were arrested in the money laundering racket being run through shell firms earlier. "The running account of Agarwal in the cash books of Jain brothers clearly establishes the close link between the inflow and outflow of funds in the form of so-called investments by way of share subscription. The so-called investment in shares of companies with no real business is nothing but accommodation entry given in lieu of cash received from the beneficiaries through Agarwal," the ED said in a statement.
Agarwal has transacted in such manner for Rs 39.21 crore in 2009-10 alone, it said.
The modus operandi of Jain Brothers was to launder the unaccounted money through the process of placement of funds, layering of transactions and the final integration of laundered money into the banking channel camouflaged as legitimate share premium transactions.
"Funds were brought in by the mediators on behalf of the beneficiaries. Jain Brothers were providing accommodation entries by accepting funds through these mediators and converting the same into share premium transactions in the beneficiary company for a certain percentage of the unaccounted money converted into share premium," the agency stated.
Agarwal was instrumental in providing accommodation entries to many high-profile people to help launder their funds. Officials stated that Agarwal played a pivotal role in the transactions between Jain brothers and Jagat Projects Ltd. "Also he is associated with some transactions involving Mishail Packers and Printers Pvt Ltd," the official stated.
The agency had taken up investigation following a complaint filed by Serious Fraud Investigating Office (SFIO) in a Delhi court against Jain Brothers and others.
During investigations, the ED said it came to light that Jagat Project Ltd converted its unaccounted money (Rs 62.20 crore)into apparently legitimate transactions by way of share subscription through 26 shell companies controlled by the brothers. In lieu of this, the brothers received Rs 1.11 crore through Agarwal.
The agency claimed that more incriminating facts were likely to come out after he is questioned.
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