The Enforcement Directorate (ED) has filed a prosecution complaint against a Delhi-based company and three persons under the Prevention of Money Laundering Act (PMLA), 2002, in a Rs 750 crore fraud case, said a statement by it on Friday.
According to the agency, the complaint has been filed against Virkaran Awasty, Ritika Awasty and their company M/s Bush Foods Overseas Pvt. Ltd, besides Sai Chandrasekhar, an employee of the complainant, Hassad Netherlands B V, for the offence of money laundering under Section 3 of PMLA.
Chandrasekhar has already been arrested by the ED, while properties worth Rs 7.16 crore, belonging to Chandrasekhar and Virkaran, have been attached.
The ED has initiated the investigation on the basis of an FIR registered by the Economic Offences Wing (EOW) of Delhi Police following a complaint by Hassad Netherlands B V, which alleged that the accounts of M/s Bush Foods Overseas Pvt. Ltd were fabricated. A charge sheet was also filed under sections 409, 420, 468, 471, 477A and 120B of the Indian Penal Code by the EOW.
As per the FIR, the financial statements of M/s Bush Foods Overseas Pvt. Ltd were mpulated by Virkaran and Ritika, along with one Vinod Sirohi by fabricating the books of accounts.
"M/s Hassad Netherlands B V was induced by Virkaran and Ritika to part with its funds amounting US$ 120 million (approx Rs 750 crore) by misrepresenting the level of stocks/inventory. On the basis of such misrepresentations, Virkaran and Ritika induced M/s Hassad Netherlands B V to provide (a) corporate guarantee for the outstanding amount of Rs 714 crores of credit facilities availed from (the) consortium of banks. Credit facilities were availed by M/s Bush Foods Overseas Pvt. Ltd on the basis of non-existent stocks/inventory. Virkaran received Rs 249.23 crores from M/s Hassad Netherlands B V as part of the deal. Sai Chandrasekhar, an employee of Hassad Netherlands B V, colluded and conspired with Virkaran to cheat the substantial sums of money," the ED said in the statement.
The attached properties include immovable properties worth Rs 6.7 crore of Chandrasekhar in Bangalore and Mumbai and balance in bank accounts to the tune of Rs 29.45 lakh, besides bank balance to the tune of Rs 16.73 lakh of Virkaran/Ritika.
According to the agency, now prosecution complaint has been filed against Chandrasekhar, Virkaran, Ritika and M/s Bush Foods Overseas Pvt. Ltd for the offence of money laundering, punishable under section 4 of the PMLA.
( With inputs from ANI )
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