45 FAQs on ED Search, Investigation, Seizure, Arrest & Special Court Proceedings

45 FAQs on Enforcement Directorate (ED) Search + Investigation + Seizure + Arrest + Special Court proceedings in India

The Enforcement Directorate (ED) of India plays a critical role in the investigation and prosecution of economic offenses, including money laundering and financial fraud. This article addresses 45 frequently asked questions (FAQs) concerning ED’s actions involving searches, investigations, seizures, arrests, and proceedings before Special Courts in India. The information covers recent high-profile cases involving prominent figures and various entities.

(I) Published by Media for Search + Investigation + Seizure + Arrest + Special Court

(A) ED Delhi Zonal office’s proceedings against Arvind Kejriwal + AAP (both)

(Source for information is www.indiatoday.in dated July 15, 2024)

1. Brief facts for ED Delhi Zonal office’s proceedings against Kejriwal + AAP

(i) ED Delhi Zonal office has completed probe against Arvind Kejriwal + AAP for alleged irregularities in framing + also implementing of Scrapped Delhi’s Liquor Excise Policy 2021-22 (all).

(ii) ED has taken services for representing them from :

(a) Tushar Mehta – Solicitor General (SG)

(b) SV Raju – Additional Solicitor General (ASG)

(iii) Arvind Kerjirwal + AAP (both) have taken services for representing them from :

(a) Abhishek Manu Singhvi

(b) Dayan Krishnan

(c) Mohit Mathur

(iv) ED has informed that Arvind Kejriwal is kingpin for Scrapped Delhi’s Liquor Excise Policy 2021-22 where several irregularities were made.

(v) (a) Arvind Kejriwal was arrested on March 21, 2024

But

(b) Supreme Court of India has granted interim bail for Lok Sabha, 2024 election complain from May 11 to June 01, 2024 (22 days)

(vi) Arvind Kejriwal is continued in Tihar jail from June 02, 2024 (till date) in parallel case for Central Bureau of Investigations (CBI) probe.

(vii) ED has filed charge sheet on May 17, 2024 against Arvind Kejriwal + AAP that Manish Sisodia + Vijay Nair (former media in-charge of AAP) had taken additional money INR 100 crore (approx.) as kickback for their election in Goa + also Punjab (all).

(viii) (a) ED had alleged that Vinod Chauhan (close associate of Arvind Kejriwal) had handled transfer for INR 5 crore (approx.) out of abovementioned INR 100 crore (approx.) from Delhi to Goa

(b) Also he has managed officers’ postings in Delhi Jal Board (DJB) on behalf of Arvind Kejriwal.

(ix) AAP has claimed that govt. is intended to at-tach AAP’s bank accounts to paralyse party’s operations in India.

(x) Delhi Chief Minister Arvind Kejriwal + Aam Aadmi Party (AAP) have denied 100% charges + also called it govt.’s political vendetta (all).

2. Searches, Investigations & seizures by ED

(i) 8 charge sheets have been filed (till date) against 40 accused in above-mentioned case

(ii) Also 48 searches / raids have been conducted (till date)

(iii) Arvind Kejriwal + also AAP are also included during investigations completed (till date) under head main accused like accused no. 37 and 38 respectively.

3. Arrest by ED

(i) Abovementioned investigations are being carried from last 22 months where 18 accused including Arvind Kejriwal are arrested (till date)

(ii) Most of abovementioned arrested accused are denied for bails (till date).

4. Properties’ Provisionally Attachment Order (PAO) by ED

(i) Now ED is focusing to identify Proceed of Crimes (PoCs) for INR 1100 crore (approx).

(ii) Also ED has passed Provisionally Attachment Order (PAO) for INR 244 crore (approx.) till date out of abovementioned INR 1100 crore.

5. Prosecution Complaint (PC) before Special Court (PMLA) New Delhi by ED

• Special court (PMLA), New Delhi has taken cognizance against abovementioned 8 charge sheets filed by ED Delhi zonal office
• Further investigations are under progress.

(II) Published by ED for Search + Investigation + Seizure + Arrest + Special Court

(B) ED Kochi Zonal office’s proceedings against multiple FIRs registered by depositors

(Source for information is ED’s Press Release dated June 29, 2024)

6. Brief facts for multiple FIRs registered by depositors

(i) ED’s Kochi Zonal office has initiated investigations based on multiple FIRs registered by depositors with Kerala Police (Crime Branch) in Thrissur District under section 420 of IPC, 1860 (now converted into Bharatiya Nyaya Sanhita (BNS 2023)

(ii) Abovementioned FIRs were registered for fraud in Karuvannur Service Co-Operative Bank

(iii) Abovementioned bank was under scrutiny of Registrar of Co-operative societies in Thriuvanthapuram where registrar has observed that fraud is committed through diversion for INR 150 crore (approx.)

7. Searches, Investigations & seizures by ED

(i) (a) ED’s Kochi Zonal office has conducted 20 searches on August 10 + August 22 + also September 18, 2023 (all) at 20 locations

(b) Also conducted 5 surveys at Co-operative Banks in Thrissur for finding Proceed of Crimes (PoCs).

(ii) ED’s Kochi Zonal office has started investigations & observed that bogus loans were sanctioned by Karuvannur Service Co-operative Bank on same property for multiples times without knowledge of society’s members.

(iii) (a) Also further observed that benami loans were sanctioned to non- society’s mem-bers based on inflated properties’ valuations

(b) Also abovementioned benami loans funds were siphoned off

(c) Also same were laundered by main accused.

(iv) Also further observed that abovementioned loans amounts were disbursed in cash to prevent money’s trail.

(v) Also further observed that abovementioned benami and illegal loans were sanctioned by Secretary and Governing Body of Society in connivance with Bank Manager

(vi) Also further observed that Thrissur District Commit-tee, CPI(M). has collected money in donations’ form + through salary cut (both)

(vii) Also further observed that society’s committee members have transferred PoCs in their undisclosed + illegally opened bank accounts (both).

(viii) Also further observed that these funds were utilized for purchase of land INR 10 Lakh (approx) by Secretary, Thrissur District Committee, CPI(M) for construction of party office which is now attached as PoCs.

8. Properties’ PAO by ED

(i) ED’s Kochi Zonal office has issued Provisional Attachment Order (PAO) for properties INR 29 Crore (approx) belonging to several accused + also their entities including Thrissur District Secretary, Communist Party of India (Marxist).

(ii) Abovementioned provisionally attached properties to in-clude 18 immovable properties for INR 65 Crore (approx) consisting lands and buildings in Kerala belonging to beneficiaries

(iii) Also to include INR 10 Lakh (approx) belonging to District Secretary, Communist Party of India (Marxist) for it’s party office.

(iv) Also to include 8 movable properties including credit balance INR 62 Lakh (approx) in 8 undisclosed bank accounts belonging to Communist Party of India (Marxist) in Thrissur. CPI(M) party which were received from beneficiaries as donations by Governing Body.

(v) Also abovementioned PoC’s possession was invested for purchase of immovable properties + credited to 5 bank accounts maintained by CPI(M) party in Karuvannur Service Co-operative Bank Ltd

9. Arrest by ED

(i) ED’s Kochi Zonal office arrested 4 accused on September 04 + also September 26, 2023 (both) like:

(a) Sathish Kumar

(b) Kiran PP

(c) Arvindakshan

(d) Jils

(ii) (a) Abovementioned arrested persons were beneficiary for illegally sanctioned loans.

(b) Hence abovementioned beneficiaries have generated PoCs

• Further investigations are under progress.

(C) ED Kochi Zonal office’s proceedings against 122 FIRs registered by depositors

(Source for information is ED’s Press Release dated June 29, 2024)

10. Brief facts for 122 FIRs registered by depositors

(i) ED’s Kochi Zonal office has initiated investigations based on 122 FIRs registered with Kerala Police by depositors against PRD Mini Nidhi Limited

(ii) (a) Abovementioned company had promised high Returns on Investments (RoI) on deposits to depositors

But

(b) Company has not given high RoI + also not returned principal amount (both)

11. Searches, Investigations & seizures by ED

(i) ED’s Kochi Zonal office has started investigations & observed that Anil kumar D + David George have together orchestrated fraud through collection of deposits from several depositors in cash + also through bank transfers (all) offering high RoI.

(ii) Also observed further that abovementioned accused persons have utilized deposits for their personal investment purposes in several properties + also businesses (both).

(iii) Also observed further that total PoC was involved for INR 82 Crore (approx) out of which properties for INR 27.88 Crore (approx.) have been traced + also provisionally attached (both).

12. Properties’ PAO by ED

(i) ED’s Kochi Zonal office has issued PAO for INR 88 crore (approx)

(ii) (a) Abovementioned provisionally attached properties to include several immovable properties belongings to primary accused D, Managing Director of PRD Mini Nidhi Ltd + also his family members (both)

(b) Also belongings to David George, former Manager of PRD Mini Nidhi Ltd.

(c) Also abovementioned value INR 27.72 Crore (approx.). to include movable properties like bank balances held in accused’ bank accounts + their family members

(d) Also to include vehicles valued at INR 16 Lakh (approx.).

13. Arrest by ED

• ED’s Kochi Zonal office has arrested main accused Anil kumar D. + also David George on May 15, 2024 and sent to judicial custody at District Jail, Kakkanad, Ernakulam.
• Further investigations are under progress.

(D) ED J&K office’s proceedings against FIR registered by NIA, Jam-mu

(Source for information is ED’s Press Release dated June 28 2024)

14. Brief facts for FIR registered by NIA, Jammu

(i) ED’s Srinagar office has initiated investigations based on FIR registered and charge sheet filed with J&K Police by NIA, Jammu

(ii) Also further main accused Abdul Momin Peer was arrested with 06 Kgs of heroin + cash seizure for INR 20 lac during checking at Handwara checkpoint by J&K Police

(iii) Also further seized cash INR 15 crore (approx) + heroin 15kg from abovementioned main accused’ relatives + associates (all) by NIA, Jammu.

15. Searches, Investigations & seizures by ED

(i) ED’s Srinagar office has started investigations & observed that main accused in collusion with his relatives like Islam-Ul-Haq Peer + Syed Iftikhar Andrabi + Syed Saleem Andrabi + also other associates (all) were involved in illegal drugs

(ii) Also abovementioned illegal trade was carried for terror activities + they were previously timely arrested in similar cases by J&K Police.

(iii) Also ED has identified + attached (both) 1 property like :

• Residential house in Bemina Srinagar which was purchased out of PoCs generated from abovementioned il-legal drug trades.

(iv) Also abovementioned property was purchased in name of his wife Syed Sadaf Andrabi

16. Properties’ PAO by ED

• ED’s Srinagar office has issued PAO for abovementioned immovable property valued at 1.50 Crore (approx) under smuggling and narcotics drugs’ for nourishment + also propagation of terror activities (both) in J&K state.
• Further investigations are under progress.

(E) ED Lucknow Zonal office’s proceedings against 554 FIRs registered by UP Police

(Source for information is ED’s Press Release dated June 28 2024)

17. Brief facts for 554 FIRs registered by UP Police

• ED’s Lucknow Zonal office has initiated investigations based on 554 FIRs registered by UP Police against Rasheed Naseem + also Shine City group of companies (both)

18. Searches, Investigations & seizures by ED

(i) ED’s Lucknow Zonal office has conducted search at 18 locations like:

(a) Allahabad

(b) Delhi

(c) Lucknow

(d) Mumbai

(e) Varanasi

(ii) Also ED has seized several digital devices + incriminating documents for Money Laundering Offence (MLO) + properties’ details acquired through PoC (all).

(iii) (a) Also ED has attached several immovable properties for INR 54 Crore (approx).

(b) Total provisionally attached proper-ties were for INR 160.28 (approx) till date.

(iv) Also further observed that abovementioned accused’ + their associates + promoters have collected funds from public under Ponzi Pyramid Scheme for high RoI through investments in real estate sector + other attractive schemes (all)

(v) Also abovementioned accused have defrauded public + diverted funds (both)

(vi) Also further observed that money collect-ed from depositors were layered + transferred + diverted to several directors + promoters + group’s associates (all).

(vii) Also further observed that diverted funds were utilized by their close confidants + associates for luxu-ry car’s purchase + residential plots + flats + commercial plots + shops + office spaces + agricultural lands (all) in benami names.

19. Properties’ PAO by ED

(i) ED’s Lucknow Zonal office has issued PAO against abovementioned Rasheed Naseem for attaching movable + also immovable (both) properties for INR 74 Crore (approx)

(ii) Also issued PAO against abovementioned Shine City Properties Ltd. for attaching movable properties like luxury cars + jewelries + also cash for INR 42 Crore (approx).

(iii) Abovementioned attached immovable properties to includes:

(a) 2 residential flats located at Mumbai + also Lucknow (both)

(b) 21 commercial shops located at Surat + also Mumbai (both)

(c) 1 commercial office space

(d) 1 commercial plot located at Lucknow

(e) 60 parcels of agricultural land located at Bakshi ka Talab + Mohanlal Ganj + also Barabanki Luck-now (all) for INR 32 Crore (approx).

20. Arrest by ED

• ED’s Lucknow Zonal office has arrested + also conducted 7 accused’ custodial interrogations like:

(i) Shashi Bala (Female)

(ii) Abhishek Singh

(iii) Durga Prasad

(iv) Udhaw Singh

(v) Ashif Naseem

(vi) Amitabh Srivastava

(vii) Meera Srivastava (Female)

21. Prosecution Complaint (PC) before Special Court (PMLA) Lucknow by ED

(i) ED Lucknow Zonal office has filed 3 PC before Special Court (PMLA) Lucknow

(ii) Special court has taken cognizance

• Further investigations are under progress.

(F) ED Mumbai Zonal office’s proceedings against FIRs registered by CBI + EOW

(Source for information is ED’s Press Release dated June 27, 2024)

22. Brief facts for FIRs registered by CBI + EOW (both)

(i) ED’s Mumbai Zonal office has initiated investigations based on FIRs registered by CBI + EOW Mumbai under several sections of IPC, 1860 (now converted into BNS 2023) based on complaint filed by Central Bank of India against Ashoka Property Developers + Ashok Kumar Singh + Ashish Kumar Singh + also Others (all)

(ii) CBI has also filed charge sheet in this case.

23. Searches, Investigations & seizures by ED

(i) ED’s Mumbai Zonal office has started investigations & observed that abovementioned accused in connivance with Sadashiv (known as Mehul Pandey) + Janardan Pan-dey + others have committed bank frauds through orchestrating criminal conspiracy using fabricated + also forged documents (all) with intention to deceive bank for INR 17 Crore (approx)

(ii) Also further observed that abovementioned funds were siphoned off after layering to related entities + shell companies for their personal gains + with intention not to repay back to banks (all).

24. Properties’ PAO by ED

• ED’s Mumbai Zonal office has issued PAO on June 27, 2024 for attaching several immovable properties like Land + Residential Flats + Commercial buildings located at Mumbai + Jaunpur, Uttar Pradesh for INR 4.19 Crore (approx) belonging to Ashok Kumar Singh + Aashish Kumar Singh + Sadashiv (Mehul Pandey) + also Janardhan Pandey (all) which were held through their beneficially owned companies/entities.
• Further investigations are under progress.

(G) ED Mumbai Zonal office’s proceedings against FIRs registered by CBI & BS&FB

(Source for information is ED’s Press Release dated June 27, 2024)

25. Brief facts for FIRs registered by CBI & BS&FB

(i) ED’s Mumbai Zonal office has initiated investigations based on FIRs registered by CBI + also BS&FB (both) Mumbai against Mandhana Industries Ltd (now GB Global Ltd) + Purushottam Mandhana + Manish Mandhana + Biharilal Mandhana + also others (all) after complaint was filed by Bank of Baroda (BOB) for defrauding banks’ consortium for INR 08 Crore (approx).

(ii) Also abovementioned company + directors have hatched criminal conspiracy to cause loss to banks by diverting loan funds through fraudulent transactions + circular trading (all).

(iii) However CBI has yet not filed Charge sheet in this case (up to June 27, 2024).

26. Searches, Investigations & seizures by ED

(i) ED’s Mumbai Zonal office has conducted search at 12 locations in Mumbai on June 26, 2024 & observed that several fictitious entities were incorporated by abovementioned company’s directors through employees for fund’s layering in bank accounts.

(ii) Also further observed that suspicious 3^rd party transactions were made to divert funds to promoters / directors + to their family members’ bank accounts (both).

(iii) Also further observed that bogus purchases were made from different entities those were providing accommodation entries “only”.

(iv) Also further seized crucial incriminating documents + numerous properties’ documents (both).

(v) Also further attached more than 140 bank accounts + 5 lock-ers + shares & securities (all) for INR 5 Crore (approx).

(vi) Also further attached 3 luxury cars like Lexus car + Merecdes Benz car + etc (all)

(vii) Also further attached expensive several watches like Rolex + Hublot + etc (all).

(viii) Also further attached several digital de-vices + incriminating documents (both).

• Further investigations are under progress.

(H) ED Nagpur office’s proceedings against multiple FIRs registered by inves-tors

(Source for information is ED’s Press Release dated June 27, 2024)

27. Brief facts for multiple FIRs registered by investors

• ED’s Nagpur office has initiated investigations based on multiple FIRs registered by investors in Parbani, Nashik + in other districts across Maharashtra under several sections of IPC, 1860 (now converted into BNS 2023) against KBC Multi Trade Private Ltd. + its promoters like Bhausaheb Chhabu Chavan + also Arati Bhausaheb Chavan (all).

28. Searches, Investigations & seizures by ED

(i) ED’s Nagpur office has conducted several search operations on March 08 + March 11, 2024 at 11 official + residential premises in Nashik + also Thane (both) in Maharashtra.

(ii) (a) Also further conducted search on 4 lock-ers held in promoters’ name + their benamindars in NAMCO Bank + HDFC Bank + State Bank of India (all)

(b) During abovementioned search from June 10 to June 12, 2024 gold bullion + jewellery + silver bullion were found for INR 3.33 crore (approx).

(iii) (a) Also further observed that Chavan family along with co-accused Company’s principal agents hatched conspiracy to attract public through Multilevel Marketing (MLM) scheme with assurance from KBC Multi Trade Private Limited + KBC Club and Resorts Private Limited for high Return on Investment (RoI)

(b) Also further observed that abovementioned accused have cheated public for more than 200 crore (approx)

29. Properties’ PAO by ED

(i) ED’s Nagpur office has issued PAO on March 19, 2024 against immovable properties for INR 24 crore (approx).

(ii) (a) Also further issued PAO on June 26, 2024 against movable assets of KBC Multi Trade Pvt. Ltd. + also others (both) for INR 33 crore (approx)

(b) Current market value for abovementioned movable assets is INR 8.85 crore (approx).

(iii) Abovementioned PAO is to include gold bullion + jewellery + silver bullion which were acquired by promoters Bhausaheb Chhabu Chavan + Arati Bhausaheb Chavanand + also others (all) using

• Further investigations are under pro-gress.

(I) ED Bhopal office’s proceedings against FIRs registered by CBI + AC-IV, Vyapam

(Source for information is ED’s Press Release dated June 27, 2024)

30. Brief facts for FIRs registered by CBI + AC-IV, Vyapam Bhopal

• ED’s Bhopal office has initiated investigations based on FIRs registered by CBI + AC-IV, Vyapam Bhopal under several section of IPC, 1860 (now converted into BNS 2023) against Narayan Niryat India Pvt. Ltd. (NNIPL) + also others (all).

31. Searches, Investigations & seizures by ED

(i) ED’s Bhopal office has started investigations & observed that NNIPL through its Director Kailash Chandra Garg + others have availed several credit facilities for INR 50 Crore (approx) from bank’s consortium led by UCO Bank through Letter of Credit (LC) + Export Packing Credit (EPC) for purchase of Soya de-oiled cake + also export in international markets (all).

(ii) (a) Also further observed that LCs availed for INR 96 Crore (approx) in year 2012 + EPCs devolved for INR 54.92 Crore (approx) these both were outstanding in account of NNIPL.

(b) Also further observed that abovementioned LCs + EPCs + interest (all) were outstanding amounting to INR 113.51 crore (approx.)

(c) Also further observed that abovementioned accounts were declared NPA by bank’s consortium led by UCO Bank

(iii) Observed further that company has not utilized funds for sanctioned purpose + also submitted fraudulent documents for availing loan from bank’s con-sortium.

(iv) Observed further that company has defrauded bank’s consortium + also diverted funds which were availed through LCs + EPCs to several associates + sister concerns + also companies (all) without transacting for goods like:

(a) Padmawati Trading Company

(b) Mandsaur Sales Corporation

(c) Ramakrishna Solvex Pvt. Ltd.

(d) Dhulatawala Exim Pvt. Ltd.

(v) Abovementioned accused have cheated for INR 51 Crore (approx) being loss to bank’s consortium.

Further observed that abovementioned accused have diverted funds for purchase of immovable properties in Madhya Pradesh + in Maharashtra in group companies’ name like:

(a) Medaria Medical Tourism Pvt. Ltd.

(b) Maple Overseas Trade Pvt. Ltd.

(c) Vardhman Solvent Extraction Industries Ltd.

32. Properties’ PAO by ED

• PAO was issued on June 18, 2024 against 34 properties existed in group companies’ name for INR 26.53 crore (approx) like:

(i) NNIPL located in Indore (Madhya Pradesh)

(ii) NNIPL located in Ratlam (Madhya Pradesh)

(iii) NNIPL located in Mandusaur (Madhya Pradesh)

(iv) NNIPL located in Akola (Maharashtra)

• Further investigations are under progress.

(J) ED Jammu office’s proceedings against FIRs registered by CBI, Jam-mu

(Source for information is ED’s Press Release dated June 27, 2024)

33. Brief facts for FIRs registered by CBI, Jam-mu

• ED’s Jammu office has initiated investigations based on FIRs registered + charge sheet filed by CBI, Jammu against main accused Yatin Yadav + others like Dr. Karnail Singh (Commandant, Med-ical Officer, BSF) CRPF Constables & J&K Police personnel for examination’s paper leak on March 27, 2022 conducted by J&K Services Selection Board (JKSSB) for recruitment of 1200 J&K Po-lice’s Sub-Inspectors.

34. Searches, Investigations & seizures by ED

(i) ED’s Jammu office has started investigations & observed that abovementioned accused were kingpin for examination’s paper leak.

(ii) Further observed that abovementioned accused had arranged candidates to pay ranging from INR 15 Lakh to INR 30

(iii) Further observed that abovementioned payments were collected mainly in cash + also in bank account (both).

(iv) Further observed that abovementioned accused had routed PoCs through his proprietorship New Global Fumigation Corporation + also other smaller investments (both).

35. Properties’ PAO by ED

• ED’s Jammu office has issued PAO for movable properties’ attachment like bank balance in abovementioned proprietorship firm’s account + also others (both) for INR 1 crore (approx.)

36. Arrest by ED

• ED’s Jammu office has arrested main accused Yatin Yadav on June 24, 2024

37. Prosecution Complaint (PC) before Special Court (PMLA) Jammu by ED

(i) ED Jammu office has produced main accused before Special Court (PMLA), Jammu on June 25, 2024

(ii) Special court has granted ED’s custody for next 07 days.

• Further investigations are under progress.

(K) ED Lucknow Zonal office’s proceedings against FIRs registered by UP Police

(Source for information is ED’s Press Release dated June 25, 2024)

38. Brief facts for FIRs registered by UP Po-lice

• ED’s Lucknow Zonal office has initiated investigations based on FIRs registered by UP Police for several crimes like murder + forgery + cheating + funds’ embezzlement + extortion + also etc. (all) under several sections of IPC, 1860 (now converted into BNS 2023)

39. Searches, Investigations & seizures by ED

• ED’s Lucknow Zonal office has started investigations & observed that main accused Vikas dubey + also his associates (both) were involved in several crimes like :

(i) Organized crimes

(ii) Land mafia crimes

(iii) Corruption crimes

(iv) Public’s fund embezzlement available for Public Distribution System (PDS)

(v) Extortion crimes

(vi) Murder crimes

(vii) Cheating crimes

(viii) Etc. crimes

40. Properties’ PAO by ED

(i) ED’s Lucknow Zonal office has issued PAO against properties purchased by Late Sh. Vikas Dubey + his family members + also associates (all) for INR 12 crore (approx.).

(ii) Abovementioned PAO was passed after obtaining confirmations from Adjudicating Authority (AA) New Delhi

41. Prosecution Complaint (PC) before Special Court (PMLA) Lucknow by ED

(i) ED Lucknow Zonal office has produced Vikas Dubey’s wife Richa Dubey + also his 5 others gang members on March 22, 2024 before Special Court (PMLA), Luck-now

(ii) Special court has taken cognizance on May 29, 2024

• Further investigations are under progress.

(L) ED Hyderabad zonal office’s proceedings against FIRs registered by CID Telangana

(Source for information is ED’s Press Release dated June 25, 2024)

42. Brief facts for FIRs registered by CID Telangana

(i) ED’s Hyderabad zonal office has initiated investigations based on FIRs registered by CID Telangana against Operation Mobilization group for charities and others

(ii) Abovementioned group has collected INR 300 Crore (approx.) from foreign’ donors through Operation Mobilization + also Dalit Freedom Network based in different countries (both) likes :

(a) Argentina

(b) Australia

(c) Brazil

(d) Canada

(e) Czech Republic

(f) Denmark

(g) Finland

(h) France

(i) Germany

(j) Ireland

(k) Malaysia

(l) Norway

(m) Romania

(n) Singapore

(o) Sweden

(p) Switzerland

(q) USA

(r) UK

• For providing free education + meals to dalit + also downtrodden children studying in more than 100 Shepherd Schools run by them (all)

(iii) Abovementioned group has diverted PoCs for assets creations + also other unauthorized purposes (both).

(iv) CID has further observed that abovementioned group has suppressed sponsorship’s amount which were received for students + tuition + also other fees (all) ranging from INR 1,000 to 1,500 per month

(v) CID has further observed that abovementioned group has diverted substantial amounts in fixed deposits + also diverted to other related entities (both).

(v) (a) CID has further observed that abovementioned group has also received grants from Government under Right to Education Act (RTEA)

But

(b) Abovementioned grants were not record-ed properly + also other incomes grossly underreported in books of accounts (both).

43. Searches, Investigations & seizures by ED

(i) ED’s Hyderabad zonal office has started investigations & observed that above-mentioned group has made several suspicious transactions for funds’ diversion in multiple immovable properties in key office bearers’ name which are located in different states like :

(a) Goa

(b) Kerala

(c) Karnataka

(d) Maharashtra

(e) Telangana

(ii) Further observed that FCRA registra-tions are also not renewed for most of group entities

(iii) Further observed that abovementioned group has diverted foreign funds to another FCRA registered entity like OM Books Foundation + also to other group entities as loan

(iv) Further observed that abovementioned loans are not repaid till now

(v) Further observed that office bearer of abovementioned group has appointed consultants to shell entities incorporated in Goa.

(vi) ED Hyderabad zonal office has conducted search operations at 11 locations in Hyderabad + in surrounding areas on June 21 + also June 22, 2024 (all) for finding irregularities in abovementioned groups’ charities.

(vii) Also further seized incriminating documents + digital devices + clandestine transactions’ records + also benami companies (all)

(viii) Also further observed that several immovable properties were acquired in key functionaries’ name out of PoCs

• Further investigations are under progress.

(M) ED Gurgaon Zonal office’s proceedings against FIRs registered by CBI Mumbai

(Source for information is ED’s Press Release dated June 24, 2024)

44. Brief facts for FIRs registered by CBI Mum-bai

(i) ED’s Gurgaon Zonal office has initiated investigations based on FIRs registered by CBI Mumbai after receiving complaints from IDBI bank + Bank of Maharashtra (BoM) for diverting bank loan’s amount through cheating + fraud + criminal breach of trust + causing wrongful loss to banks by Amtek Auto group of companies for INR 35 crore (approx.) under several section of IPC, 1860 (now converted into BNS 2023) + also Prevention of Corruption Act (PCA) 1988 (all)

(ii) (a) Supreme court of India has also directed ED on February 27, 2024 to investigate 100% eligible cases where Money Laundering Offences (MLOs) are punishable under PMLA, 2002

(b) Abovementioned direction is issued while pronouncing decision in Public Interest Petition (PIP) filed against Amtek Auto group of companies.

45. Searches, Investigations & seizures by ED

(i) ED’s Gurgaon Zonal office has started investigations & conducted search operations on June 20, 2024 at 40 different locations like:

(a) Delhi and NCR

(b) Mumbai

(c) Nagpur

(ii) Abovementioned search operations were conducted on different entities + persons (both) like:

(a) ACIL Limited

(b) Amtek Auto Limited

(c) Metalic Forging Limited

(d) Castex Technologies Limited

(e) ARG Limited

(f) Arvind Dham

(g) Anubhav Dham

(h) Gautam Malhotra

(i) Others

(iii) Abovementioned MLOs are covering total bank frauds for INR 25000 crore (approx.) with more than 15 public + also private sector fi-nancial institutions (both).

(iv) Abovementioned group of companies adopted insolvency resolutions where more than 80% hair cut were accepted causing financial loss to public + private financial institutions for INR 20000 crore (approx.)

(v) ED’s Gurgaon Zonal office has observed that abovementioned group of companies have deployed more than 500 (approx.) shell companies to hold + to invest in high value real estates + also luxury properties (all).

(vi) Also further observed that shell companies were not declared related parties as required under Companies Act (CA) 2013 + also SEBI Act, 1992 (both).

(vii) Also further observed that abovementioned group companies have window dressed their financial statements as filed with SEBI + BSE + NSE + also etc. (all)

(viii) Also further observed that abovementioned group companies have created bogus assets in their books of accounts with collusion of statutory auditors + finance professionals + Company Secretaries (CS) + also finance directors (all).

(xi) Also further observed that bogus plants and machineries were declared in their financial statements for INR 10,000 crore (approx.).

(x) Also further observed that several Benami companies were maintained for holding high value real estate assets for INR 1000 crore (approx.)

(xi) Also further observed that abovementioned group companies have appointed low paid employees as directors for holding PoC where Beneficially Owners (BOs) are promoters of Amtek group of companies like:

(a) Peon

(b) Driver

(c) Housekeeping staff

(d) Security guard

(e) Etc.

(xii) Also further observed that abovementioned properties were sold at nominal value to their sister concerns for concealing PoC

(xiii) Also further observed that several recoverable (debts) in foreign companies were written-off causing wrongful losses to bank’s

(xiv) (a) ED Gurgaon Zonal office has also recovered several properties’ documents from hidden private lockers

(b) Also seized cash for INR 53 crore (approx) from above lockers

(c) Also seized Jewellery for INR 1 crore (approx) from above lockers

(d) Also recovered incriminating documents for siphoning of banks’ loan funds from above lockers

• Further investigations are under progress.

Conclusion: The Enforcement Directorate’s extensive actions in search, investigation, seizure, and arrest processes highlight its crucial role in combating economic crimes in India. The diverse cases range from high-profile political figures to large-scale financial frauds, underscoring the ED’s commitment to addressing corruption and financial malfeasance. The ongoing investigations and provisional attachments illustrate the ED’s efforts to recover illicitly gained assets and ensure accountability among high-profile individuals and entities.

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(Author can be reached at email address satishagarwal307@yahoo.com or on Mobile No. 9811081957)

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