New Delhi April 4 (IANS) The Enforcement Directorate (ED) has attached assets worth Rs 36 crore of suspended Chhattisgarh official B.L. Agrawal who allegedly laundered money through fake bank accounts an officer said on Tuesday.
Agrawal an Indian Administrative Service officer then Principal Secretary (Higher Education) in the Chhattisgarh government was arrested by the Central Bureau of Investigation (CBI) on February 21 on charge of trying to settle a case being probed by the central agency against him.
ED has attached assets worth Rs 36.09 crore under the PMLA (Prevention of Money Laundering Act) an ED officer told IANS.
The attached property belongs to Agarwal and Raipur-based Prime Ispat Ltd a compnay owned by his brothers.
According to the Directorate Agarwal laundered money amassed by him through various fake bank accounts.
With active connivance of bank officials Agarwal is alleged to have opened 446 benami bank accounts in the names of villagers in the Union Bank of India Raipur.
The cash deposited in the accounts was channelised to shell companies as share application money and thereafter the shell companies invested the said money as equity at a large premium in Prime Ispat Ltd said the agency.
These equity shares belonging to the shell companies were purchased in the end by sister concerns of Prime Ispat Ltd thus leaving the control of the entire tainted money with Babulal Agrawal and his brothers it said.
The money was also used for investing in factory building land and machinery and other immovable properties of the company.
The agency said that the funds were moved from the benami bank accounts to 13 shell companies operated by Agrawal by way of investment.
In total the 13 shell companies received investment in its equity to the extent of Rs 39.67 crore it said.
The ED so far has attached Rs 4.40 crore worth of land Rs 23.89 crore worth plant and machinery Rs 7.07 crore worth of factory building as well as a vehicle and residential building belonging to Agarwal.
The CBI had in 2010 registered cases against Agarwal on charges relating to impersonation cheating and disproportionate assets. The Chhattisgarh Police too had registered a disproportionate assets case against him.
--IANS
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ED attaches Rs 36-crore assets of suspended IAS officer (Lead)
