Vijay R. Gupta of Vindhyavasini Group Allegedly Established 40 Shell Companies to Misappropriate Funds: ED
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Synopsis
The Enforcement Directorate has arrested Vijay R. Gupta, Director of Vindhyavasini Group, for allegedly creating 40 shell companies to divert funds. This action follows a fraud investigation related to the State Bank of India, involving substantial non-performing assets. Ongoing investigations reveal further misappropriation of loan proceeds.
Key Takeaways
- Vijay R. Gupta arrested for fund diversion.
- 40 shell companies allegedly created for fraud.
- Investigation linked to State Bank of India.
- Non-performing assets reached Rs 764.44 crore.
- Ongoing inquiries into Gupta's activities.
Mumbai, March 28 (NationPress) The Enforcement Directorate (ED), Mumbai Zonal Office, announced on Friday that Vijay R. Gupta, the promoter and Director of Vindhyavasini Group of Companies, was apprehended on March 26 for allegedly creating 40 shell companies to misappropriate funds.
The Mumbai-based entrepreneur, Vijay R. Gupta, was detained under the Prevention of Money Laundering Act (PMLA), 2002, in relation to a fraud case involving the State Bank of India (SBI).
The Special PMLA Court has placed him in ED custody for seven days, extending until April 2.
The ED's investigation was triggered by FIRs filed by the CBI and Mumbai’s Economic Offences Wing (EOW) against six firms associated with the Vindhyavasini Group, including their promoters, Vijay R. Gupta and Ajay R. Gupta.
According to the ED, these companies allegedly obtained various credit facilities from SBI using forged and falsified documents, resulting in non-performing assets (NPAs) amounting to Rs 764.44 crore in 2013.
The investigation revealed that Gupta secured term loans and cash credit facilities under the names of four Vindhyavasini Group firms for the acquisition of steel rolling mills located in Silvassa and Maharashtra.
Moreover, he obtained a loan in the name of M/s Rajput Retail Ltd. for the construction of a mall and the procurement of commercial properties. These loans were secured through forged and inflated Memorandums of Understanding (MOUs) to evade the requirement of promoter contributions.
The ED's investigation further uncovered that Gupta had established over 40 shell entities to siphon off and redirect loan proceeds from the group’s accounts.
It has also come to light that a portion of the loan proceeds was utilized for purchasing immovable properties within Mumbai and its surrounding regions.
Further inquiries into the case are ongoing.
