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Blackmoney: ED opposes bail plea of two in Rs 2,240 case

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Press Trust of India New Delhi
Last Updated : Nov 28 2017 | 7:55 PM IST
The Enforcement Directorate today opposed the bail applications of two directors of a private company, arrested in a money-laundering case relating to alleged cheating of several banks to the tune of Rs 2,240 crore.
The central probe agency told Additional Sessions Judge Sidharth Sharma that the directors of Surya Vinayak Industries Limited -- Sanjay Jain and Rajiv Jain -- might hamper with the ongoing investigation if released on bail.
Special public prosecutor Nitesh Rana, appearing for ED, said the quantum of proceeds of crime was very high and if granted the bail, the accused may divert the crime properties which are yet to be attached.
He also said that some of the accused were yet to be arrested.
The court, which heard part arguments, will resume the proceedings tomorrow.
In their bail application, the accused persons have claimed that they were not required for the purpose of investigation any further and should be granted the bail.

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In their application, the accused also cited a recent Supreme Court judgement striking down a stringent condition for securing bail in money laundering cases.
The accused were arrested on August 22, days after they were granted bail in a CBI case related to the matter.
The agency had earlier told the court that the four accused used more than 100 shell companies for routing and diverting the bank funds. The firm and the shell companies had no genuine business transactions, the agency had alleged.
The company had allegedly diverted bank funds to the tune of Rs 2,240 crore, which resulted in loss to the consortium.
Over Rs 300 crore of working capital was also allegedly moved to six companies set abroad, the agency said.
The case was registered by the CBI on the complaint of Punjab National Bank (PNB), alleging that the accused were using over 100 shell companies for routing and diverting the bank funds.
In its complaint, the PNB had alleged that the company had diverted bank funds to the tune of Rs 2,240 crore, which resulted in loss to the consortium. It had alleged that they had cheated 17 nationalised and four private banks.
Later, ED also registered a case in this regard.
It was alleged that the 100 shell companies used by the accused for routing and diversion of bank funds had no genuine business transactions.

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First Published: Nov 28 2017 | 7:55 PM IST

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