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The Enforcement Directorate (ED),Chennai, has provisionally attached properties of about Rs 25 crore of Farouk Irani, former managing director of First Leasing Company of India Ltd (FLCIL), who is under judicial remand at Phuzal Central Prison.
Irani was arrested in June by the Chennai Zonal office of the Enforcement Directorate, under the provisions of Prevention of Money Laundering Act, 2002 (PMLA).
Based on the complaints of banks that accounts of First Leasing Company of India Ltd, Chennai, were falsified and loans were availed.
Central Bureau of Investigation, Bank Securities and Fraud Cell, Bengaluru, has registered FIRs and started investigations into these bank fraud cases of about Rs 522 crore.
Accordingly, money laundering case was registered by the Directorate of Enforcement, Chennai Zonal Office, against First Leasing Company, Chennai, and others.
The investigation conducted so far disclosed that Irani, the erstwhile managing director of FLCIL is behind the entire fraud and in the process, he enriched himself to the tune of about Rs 100 crore.
Earlier, ED conducted searches and attached fixed deposits of about Rs 51 crore in his name and in the name of his wife, daughters and Irani Family Maintenance Trust.
Further investigations revealed the two residential properties were also acquired using the proceeds of crime. Similarly, two cars were also acquired using the proceeds of crime, said the ED.
Considering the material available on record and on the reasonable belief that the above said properties are related to the proceeds of crime, the following properties of over Rs 25 crore were attached provisionally under the provisions of Prevention of Money Laundering Act, according to ED’s release.
