ED Seizes Assets Worth Rs 995.75 Crores in PMLA Investigation
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Synopsis
The ED has provisionally attached assets worth Rs 995.75 crore under PMLA related to fraudulent sugar mill disinvestments in Uttar Pradesh, involving significant irregularities and illicit funding linked to former MLC Mohd. Iqbal.
Key Takeaways
- ED attached assets worth Rs 995.75 crore.
- Investigation linked to fraudulent sugar mill disinvestment.
- Irregularities found in the bidding process.
- Illicit funds traced to Mohd. Iqbal.
- Ongoing investigations into the matter.
New Delhi, Feb 27 (NationPress) The Directorate of Enforcement (ED) from the Lucknow Zonal Office has provisionally attached immovable properties valued at Rs 995.75 crore under the Prevention of Money Laundering Act (PMLA), 2002, linked to the fraudulent disinvestment of defunct sugar mills in Uttar Pradesh.
The seized assets encompass three defunct sugar mills, including land parcels, buildings, and machinery under the ownership of M/s Mallow Infratech Pvt Ltd, M/s Dynamic Sugars Pvt Ltd, and M/s Honeywell Sugars Pvt Ltd, which are managed by Mohd. Iqbal, a former MLC. These sugar mills are located in Baitalpur, Bhatni, and Shahganj in Uttar Pradesh, as stated by the ED.
The investigation by the ED commenced following an FIR lodged by the Central Bureau of Investigation (CBI) citing various sections of the Indian Penal Code (IPC), 1860, and the Companies Act, 1956.
The FIR claims that Mohd. Iqbal and his affiliates fraudulently secured numerous sugar mills in Uttar Pradesh via a manipulated disinvestment scheme.
Findings from the ED investigation unveiled significant discrepancies in the disinvestment procedure, including undervaluation of assets and a non-competitive bidding process.
The probe further confirmed that the actual market value of the sugar mills was substantially higher than the sale prices. The funds utilized for purchasing these sugar mills were illicit proceeds belonging to Mohd. Iqbal, obtained through unsecured loans from M/s V.K. Health Solutions Pvt. Ltd., laundered through various shell companies.
The investigation also disclosed that the sugar mills and their related land assets were acquired through Special Purpose Vehicles (SPVs), specifically M/s Mallow Infratech Pvt Ltd, M/s Dynamic Sugars Pvt Ltd, and M/s Honeywell Sugars Pvt Ltd, after which the shareholding of these firms was strategically shifted, ultimately centralizing control under Mohd. Iqbal and his close associates and family.
The ED has traced the proceeds of crime associated with this fraudulent disinvestment and has now attached these immovable properties valued at Rs 995.75 crore.
Further investigations are currently ongoing.
