 "ED attaches Rs 51 cr worth FDs from Farouk Irani, relatives")
Irani was arrested on Tuesday, by the Chennai Zonal office of the ED, under the provisions of Prevention of Money Laundering Act (PMLA), 2002. He is currently under judicial remand at Phuzal Central Prison.
In an investigation related to falsified accounts with FLCIL, the ED alleged "The investigation conducted so far disclosed that Farouk Irani, the erstwhile Managing Director of FLCIL is instrumental in the entire fraud and in the process, he enriched himself to the tune of about Rs 100 crore."
Simultaneous searches were conducted on his residential premises in Chennai and the premises of his two daughters in Mumbai, which resulted in recovery of fixed deposits of about Rs 51 crore in his name and in the name of his wife, daughters and Irani Family Maintenance Trust.
"Considering the material available on record and on the reasonable belief that the said fixed deposits are related to the proceeds of crime, the said deposits of over Rs 51 crores were attached provisionally on June 16, 2016, under the provisions of Prevention of Money Laundering Act," added a statement from the directorate.
Based on the report of RBI audit inspection, stating that accounts of FLCIL, Chennai were falsified, a consortium of the lending banks has conducted a forensic audit of the accounts of the company which reveled that the company accounts were falsified so as to show inflated incomes and profits to the tune of over Rs 1,600 crore.
IDBI and SBI lodged complaints and CBI, Bank Securities and Fraud Cell, Bengaluru has registered FIRs and started investigations into these Bank fraud cases of about Rs 522 crore. Money laundering case was registered by the ED, Chennai Zonal Office, Chennai against First Leasing Company of India Ltd, Chennai and others.