ED attaches property worth Rs 1000 crore in sugar mill rip-off case.
In an enormous improvement within the Uttar Pradesh sugar mill rip-off, the Enforcement Directorate (ED) on Tuesday hooked up properties to the tune of Rs 1,000 crore, together with the properties of former MLC Mohammad Iqbal. Enforcement Directorate, Lucknow Zonal Office, has hooked up seven sugar mills owned by Mohammad Iqbal and his relations valuing about Rs 1097,18,10,250 (approx Rs 1,000 crore) under the provisions of the Prevention of Money Laundering Act, 2002.
Earlier, ED Lucknow Zone has recorded a case under Prevention of Money Laundering Act, 2002 towards Mohammad Iqbal, ex- MLC Saharanpur and others primarily based on the investigations carried out by Serious Fraud Investigation Office (SFIO), Ministry of Corporate Affairs, Delhi referring to acquisition of property by way of illegitimate means in 2010-2011 by Iqbal and others.
Namrata Marketing P Ltd and Giriasho Company P Ltd., shell firms under the management of Iqbal and relations, participated within the bidding means of disinvestment of sugar mills of the UP authorities throughout 2010-11 and bought 7 sugar mills by way of laundering of illegitimate cash by way of numerous shell firms having dummy administrators and sham transactions.
The Performance Audit Report of the Comptroller and Auditor General of India (C & AG) on “Sale of Sugar Mills of Uttar Pradesh State Sugar Corporation Limited” for the 12 months ended March 31, 2011 additionally highlighted the executive and monetary discrepancies/irregularities within the disinvestment/sale means of the sale of sugar mills at Bareilly, Kushinagar, Hardoi, Deoria & Barabanki which had been acquired by Namrata Marketing P Ltd and Giriasho Company P Ltd., firms under the management of Mohd. Iqbal and his associates.
The CBI has additionally recorded FIR for conducting investigations into the sale of sugar mills to those firms and non-compliance of stipulated guidelines and procedures by the involved authorities officers.
In the investigation carried out by ED under PMLA, statements of key associates of Mohammad Iqbal, lodging entry operator and dummy administrators of assorted firms had been recorded. Evidences had been additionally collected from banks, Ministry of Corporate Affairs, district property registration authorities & earnings tax division. Further, search operations had been additionally carried out on the residence of Mohd. Iqbal and his associates in Saharanpur and associated premises in Delhi whereby incriminating paperwork, valuables and information had been recovered.
The investigation carried out by ED has revealed that in 2010-2011, Namrata Marketing P Ltd and Giriasho Company P Ltd. participated within the bidding means of sugar mills of Uttar Pradesh Rajya Chini Avam Ganna Vikas Nigam Limited (UPRCGVNL).
The firms didn’t submit the shareholding sample and background of key promoters which had been the stipulated situations on the time of bidding.
It can also be observed throughout investigation that the funds had been infused both into these firms by way of money deposits made in shell firms’ financial institution accounts and additional routed into these two firms by way of sham transactions or there was infusion of funds disguised within the type of share utility cash for subscription to shares of those two firms at excessive premium.
For the aim of registration and execution of sale deeds, the 2 firms, Giriasho Company Private Limited and Namrata Marketing Private Limited had bought seven paper firms, specifically
- Ablaze Sugar Mills Private Limited
- Adarsha Sugar Solutions Private Limited
- Agile Sugar India Private Limited
- Eikon Sugar Mills Private Limited
- Majesty Sugar Solutions Private Limited
- Mastiff Sugar Solution Private Limited
- Okra Sugars Private Limited
The above talked about had been handled as their Special Purpose Vehicles (SPV). All these firms had been integrated on the identical date in 2011.
In furtherance of the legal conspiracy of cash laundering, cash within the type proceeds of crime so gathered by Mohammad Iqbal, his associates and relations had been used to amass and beneficially personal 7 sugar mills i.e.
- Laxmiganj Sugar Unit, Kushinagar
- Bareilly Unit, Nekpur and Saidpur Village, Bareilly
- Deoria Unit, Salempur Majholi, Deoria
- Hardoi Unit, Nanankganj, Grunt, Gopamau, Hardoi
- Barabanki Unit, Pargana-Nawabganj, Barabanki
- Ramkola Unit, Pargana-Sidhua Jogana, Kushinagar
- Chhitauni Unit, Pargana-Sidhua, Padrauna, Kushinagar
The current valuation of land of seven sugar mills involves about Rs.1097,18,10,250/ (approx Rs 1,000 crore). The sugar mills had been bought to Iqbal and his relations at throwaway costs solely at Rs. 60.28 crore by way of disinvestment/sale course of within the 12 months 2010-11. It is to notice that, the investigation within the case remains to be underway.
An ED supply associated to the probe mentioned, “The agency has attached properties to the tune of Rs 1,000 crore, including seven properties of former Saharanpur MLC Mohammad Iqbal.” The properties have been hooked up under the Prevention of Money Laundering Act (PMLA).
The ED had registered the case under related sections of the PMLA on the premise of an FIR which was lodged by the CBI in reference to the rip-off. Even retired IAS officer Netram, who was a detailed confidant of then Chief Minister and Bahujan Samaj Party (BSP) supremo Mayawati, and different senior officers will come under the ED scanner.
In April 2018, Uttar Pradesh Chief Minister Yogi Adityanath had beneficial a CBI probe into the disinvestment of 21 sugar mills in 2010-2011. According to ED officers, 11 sugar mills had been bought throughout 2010-11, when the BSP-led authorities was in energy within the state.
(With inputs from IANS)
