A special court in Chandigarh on Tuesday remanded Lalit Goyal, Managing Director of IREO Group of companies, for seven-day Enforcement Directorate custody.
Goyal was arrested by the ED earlier in the day under the Prevention of Money Laundering Act, 2002 in a case related to cheating and siphoning of funds of home buyers, investors and others.
The ED said that Goyal was arrested as he was "non-cooperative" during the investigation of the case and "did not divulge any relevant information" while being questioned for the last four days at the Federal agency's Chandigarh branch.
"Therefore, he (Lalit Goyal) was arrested on November 16, 2021, under section 19 of Prevention of Money Laundering Act, 2002," said the ED.
Goyal was detained at Indira Gandhi International (IGI) Airport in the wee hours on November 11 in wake of the Look Out Circular issued against him by the Enforcement Directorate, while he was trying to leave the country.
The ED initiated a money-laundering investigation on the basis of FIRs registered at Panchkula by Haryana Police, FIR of Economic Offences Wing in Delhi and FIR registered at Hauz Khas police station in Delhi against IREO Private Limited, IREO Fiveriver Private Limited, Goyal and others.
"Modus operandi adopted by the group includes routing of funds from various entities based in tax havens countries like British Virgin Islands (BVI), Mauritius etc, diversion of funds by way of buy back of equity shares, recording of fictitious expenses in the books of accounts, writing off project in progress, loans and advances to sister concerns and round tripping of funds through shell companies," the ED said.
Total funds involved are over Rs 2600 crore, part of which is proceeds of crime, said the agency.
ED investigation further reveals that Goyal is "settler and named beneficiary of a Guernsey based overseas Trust, which owns and controls entities holding assets outside India".
Recent Pandora Papers Leak has also named four entities (which are beneficially owned by Lalit Goyal) having registered address in BVI hold assets having value more than USD 77.73 Million (Rs 575 crore approximately), the ED added.
( With inputs from ANI )
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