Money laundering probe: Former NCP Member of Parliament Sameer Bhujbal. Express Photo Money laundering probe: Former NCP Member of Parliament Sameer Bhujbal. Express Photo

The Enforcement Directorate (ED), probing a money laundering case against former Deputy Chief Minister Chhagan Bhujbal and his family, pegged the loss to the state exchequer at Rs 870 crore.

This was revealed in the remand copy filed in the Special Prevention of Money Laundering Act (PMLA) Court while seeking the remand of Chhagan Bhujbal’s nephew Sameer, arrested on Monday.

The court remanded Sameer to ED custody until February 8.

“The money trail is Rs 870 crore. Of this Rs 114 crore has been recovered. The money was transferred in several accounts set up by the accused and siphoned off,” said advocate Hiten Venegaonkar, who represented the ED.

He added that three summons had been issued to Sameer in September, November and December last year, directing either him or his authorised representative to report to the ED office with all necessary documents.

“He failed to appear. Only letters were written. He refused attendance. There was no cooperation with the investigation,” Venegaonkar said.

“It is alleged that the Bhujbals accepted cash in lieu of projects to contractors, channelled such illegal cash into various companies and integrated it into business activities of the group companies,” the remand copy read.

The agency recorded statements of various employees and co-directors of companies.

“Chartered Accountant Sunil Naik deposed that shares of Parvesh Construction Pvt Ltd and Armstrong Energy Pvt Ltd fully owned and controlled by Bhujbals were sold to dubious entities against cash at unrealistic high premiums of Rs 990 per share and funds to the tune of Rs 75 crores and Rs 50 crores respectively were channelled,” the remand copy read.

“Suresh Jajodia, market operator stated that as instructed by Sunil Naik, he arranged funds in the bank account of Parvesh Construction and Armstrong Energy against cash he received from MET (Mumbai Educational Trust) office of Bhujbals in Bandra and used to transfer it to his Kolkata contacts using hawala operators”, it stated

“Praveen Jain, controller of various companies admitted that he had accepted cash from Naik and in turn arranged cheque payments in the bank accounts of Armstrong Energy in lieu of cash to the tune of Rs 10.50 crore”.

His employee Prabhakar Sogam visited MET office on his instruction a numerous times and collected cash.

Kolkata-based financial consultant Sanjiv Jain received approximately Rs 8 crore in cash from Naik for arranging cheque payments in the accounts of Parvesh Construction and Armstrong Energy in the guise of share purchase at high premiums.

ED officials claimed that Chartered Accountant Chandra Shekhar helped Bhujbals form two companies — Minutex Processors Pvt Ltd and Mangal Sago Pvt Ltd — and arranged payments to the tune of Rs 10.24 crores and Rs 15.78 crores in the bank account of Parvesh Construction in the guise of share purchase at high premium.

The ED investigations also found that Hingora Finvest Pvt Ltd, the largest shareholder of Parvesh Construction, existed only on paper.

Kotak Mahindra Bank informed that Hingora Finvest does not exist on declared office and registered address. The bank has given the same reply on a query sought by the agency on the other companies, the ED has said.

“It appeared that the share purchasing entities were bogus and used by Bhujbals to channelise and integrate tainted funds received by committing the criminal activities alleged in the FIRs and these tainted funds appear to be laundered in the guise of equity subscription at unreasonably high premium with the help of operators and chartered accountants,” the remand copy said.

During Monday’s raids by the agency at nine locations, statements of directors of five companies related to the scam were recorded.

“The directors deposed that Bhujbals were the main controller and actual owners of the firms. These directors stated that Sameer Bhujbal was the main person who decided all matters pertaining to the affairs of the companies and could explain the financial transactions of these firms,” the remand copy read.

Statement of Sameer Bhujbal was recorded under section 50 of the PMLA on Monday. In his statement, the former Member of Parliament (MP) from Nashik has shifted the blame on his Chartered Accountant, claiming that since he is an active politician he was not looking into the day-to-day affairs of the group companies.

“The share sell of high premium of their companies was handled by their CA Naik and he had no role to play,” Sameer has allegedly told the ED sleuths. However, the investigation by the agency reveals Sameer was the main controller and beneficiary of the money laundering

activities.

The agency has attached proceeds of crime to the tune of Rs 114 crores and has to identify the other proceeds of the tune of Rs 750 crores.

However, advocate Pranav Badheka, who represented Bhujbal, countered that his client had been in constant communication with the ED and had declared his readiness to record a statement.

He added that Sunil Naik, Bhujbal’s chartered accountant, kept track of his financial transactions.

“The Chartered Accountant has put his hands up. He (Sameer Bhujbal) is a politician doing public service. He is not supposed to know all financial entries. He has the right to remain silent, despite that he has been co-operating with the probe,” Badheka argued.

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