The Special PMLA Court in Mumbai has taken cognisance of an Enforcement Directorate (ED) prosecution complaint against Ajit Kulkarni of Pratibha Industries Ltd (PIL) and 33 others in an alleged money laundering case involving Rs 4,957.31 crore.
The court accepted the ED’s complaint on Monday and issued summons to the accused. The agency has alleged that funds obtained from a consortium of 17 banks were diverted and subsequently used to acquire movable and immovable assets.
The court observed that “the accused persons are found in manipulating sale-purchase documents without actual movements of goods. It is particularly seen that the money taken from Consortium Bank was siphoned off in utilising and acquiring various movable and immovable properties.”
ED Traces Alleged Money Trail
According to the prosecution, investigators uncovered documents relating to properties allegedly purchased using proceeds of crime. Some of these assets were subsequently sold, with the sale proceeds allegedly used or exhausted by the accused.
The court noted, “It is pertinent to note that the complaint lodged by the ED shows money trail wherein the purchase originated from M/s PIL.”
PIL, established as a partnership firm in 1995, specialised in engineering, designing and executing infrastructure projects. Its reported clients included the Delhi Metro Rail Corporation, Delhi Jal Board, Municipal Corporation of Greater Mumbai, PHED Rajasthan and MCD Car Park. The company is alleged to have undertaken more than 100 government and private-sector projects since 2010.
Alleged Diversion of Bank Funds
The prosecution alleged that PIL initially obtained banking facilities of Rs 1,331.15 crore from the consortium, with the limits subsequently revised. Investigators alleged that the sanctioned funds were diverted from their intended purposes.
The ED further alleged that financial difficulties emerged from 2013-14 and that the company became involved in issuing allegedly false Letters of Credit and Bank Guarantees.
The agency alleged that “all the accused persons hatched the conspiracy and defrauded Consortium of 17 Banks for an amount of Rs 4,957.31 crore, which is proceeds of crime generated by them.”
Court Finds Prima Facie Money Trail
While taking cognisance, the court said, “It is pertinent to note that the complaint lodged by the ED shows money trail wherein the purchase originated from M/s PIL. The complaint also reveals about the specific role of each and every accused and the money trail siphoned off by each of them. Thus, from the complaint and the material placed on record, prima facie depicts and discloses the consistent and systematic course of conduct by the accused persons in siphoning off the money.”
The case will now proceed through the judicial process, with the allegations subject to adjudication before the court.
Source: The Free Press Journal
