Bengaluru, July 10 The Directorate of Enforcement (ED), Bengaluru Zonal Office, has arrested the key accused Ravi Yallappa Kurbett in connection with double compensation scam at Karnataka Industrial Area Development Board (KIADB), Dharwad, in the case of V.D. Sajjan and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the official statement said on Thursday.
The arrest was made on July 8.
The ED stated, "This scam was perpetrated by retired Special Land Acquisition Officer, Dharwad V.D. Sajjan, in collusion with other accused persons. The arrested person, Ravi Yallappa Kurbett, was produced before the Court of 3rd Additional District and Sessions Judge (PMLA), at Mangaluru on Aug 9. The Court has granted remand of 7 days to ED."
The evidence and documents collected during the course of investigation in this case have indicated active involvement of Ravi Yallappa Kurbett in the comprehensive money laundering scheme perpetrated at KIADB Dharwad, the ED stated.
ED investigation revealed an ingenious modus operandi used by the accused persons to fraudulently claim and withdraw double compensation from KIABD in the name of persons who had already received compensation or who had already passed away. Ravi Yallappa Kurbett played an instrumental role in this entire process, the statement said.
Ravi Yallappa Kurbett has been a major beneficiary of the Proceeds of the Crime (POC) generated in this scam. He has utilised the POC for the purchase of immovable properties in his name and in the name of his relatives and for personal consumption, the ED said.
It is pertinent to mention that ED has already attached properties amounting to approximately Rs 13 crore in this case earlier, the ED said.
Earlier, a Prosecution Complaint was filed in this case against 22 accused persons in the court of the 3rd Additional District and Sessions Judge, PMLA, 2002, at Mangaluru. The court has taken cognisance of the same, and the case is under trial. Further investigation is in progress, according to the ED.
ED investigation under PMLA, 2002 has uncovered the modus operandi used by the accused persons to fraudulently claim and withdraw double compensation from KIADB in the name of persons who had already received compensation or who had already passed away, the ED stated.
Approximately Rs 46 crore was withdrawn in cash from the bank accounts opened using fictitious PANs. Tax deducted at the time of cash withdrawal under section 194-N of the IT Act has been credited to these PANs. Such TDS, which is Proceeds of Crime, has now been provisionally attached.
The ED had stated: “The accused persons had adopted fake identities for withdrawal of fraudulent compensation in connivance with KIADB officials and Bank officials. Applications were submitted by the accused persons to Unique Identification Authority of India (UIADI) for updating their demographic details like name, address and mobile number in the Aadhar database in order to impersonate genuine land owners in whose name preliminary notification for land acquisition was notified, which was subsequently accepted.”
Accordingly, fake Aadhar identities impersonating the genuine land owners were created. Using these fake identities, which are updated Aadhar, fictitious PANs were obtained. These PAN cards obtained were used to open bank accounts in collusion with bank officials, the ED stated.
Applications were again submitted before KIADB for claiming second-time compensation by using fake identities. These illegal second-time compensations were sanctioned by the KIADB officials in collusion with the accused persons. These compensations were credited in the bank accounts opened with fictitious PANs, which were immediately withdrawn in cash with the collusion of bank officials, the ED said.
The illegal compensation obtained through this method was distributed among the accused persons. In some cases, this entire exercise was done in the name of deceased landowners, who had already received full and final compensation, the ED said.
--IANS
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