ED is probing the purported purchase of shares worth ₹50 lakh of a company linked to Qureshi

The Enforcement Directorate has arrested Hyderabad-based businessman Sana Sathish Babu in connection with the Moin Qureshi case. The case pertains to charges that Mr. Qureshi received money from several people on the promise of getting help from influential public servants.

The ED is probing the purported purchase of shares worth ₹50 lakh of a company linked to Mr. Qureshi by Mr. Babu.

The businessman was earlier called as a witness in this money laundering case but with the latest development, he has turned an accused. Officials said Babu was arrested from New Delhi on July 26 night under the provisions of the Prevention of Money Laundering Act (PMLA). Babu was grilled for a few hours and was taken into custody as he was “not cooperating” in the probe, they said.

It is suspected that the amount was paid as a bribe to settle a case. The Central Bureau of Investigation’s special probe team, under the then Special Director Rakesh Asthana, had earlier recommended his arrest in its own case against Mr. Qureshi and others.

However, in October last year, the Alok Kumar Verma-led agency registered a case of alleged corruption against Mr. Asthana and his subordinates, based on Mr. Babu’s complaint. Mr. Babu alleged that he had paid a bribe to get relief in the case.

On the other hand, officials close to Mr. Asthana levelled similar allegations against Mr. Verma. The matter reached the Central Vigilance Commission (CVC), which initiated an inquiry into the charges and counter-charges.

The CVC order dated October 23, 2018, divested Mr. Verma of his powers as the CBI Director under the Prevention of Corruption Act pending inquiry. Mr. Asthana was also stripped of his responsibilities. Mr. Verma was removed from the post of CBI Director in January, following the CVC recommendation.

(With inputs from PTI)