: The Enforcement Directorate has provisionally attached properties belonging to Farouk M. Irani, the former Managing Director of First Leasing Company of India Limited (FLCIL).
In family members’ names
“The department has attached properties of over Rs. 25 crore of Farouk Irani, which are in the name of his family members,” K.S.V.V. Prasad, Joint Director, Enforcement Directorate, Chennai, told The Hindu . Further investigations are on, he said.
According to Mr. Prasad, “Investigations show that two residential properties - one at Kotturpuram valued at Rs. 18.5 crore (approximately) and a house property at Sholinganallur, valued at Rs. 6.5 crore (approximately) were acquired using the proceeds of crime.” Two cars - Mercedes Benz (Rs. 48 lakh) and Toyota Corolla (Rs.18 lakh) were also attached. Considering the material available on record and on the reasonable belief that the above said properties were related to the proceeds of crime, they were attached under the provisions of the Prevention of Money Laundering Act, said the Enforcement Directorate official.
The investigation conducted so far has revealed that the erstwhile managing director of FLCIL was instrumental in the entire fraud and in the process had enriched himself to the tune of Rs 100 crore.
Fixed deposits
In June, the ED conducted searches and attached fixed deposits to the tune of Rs. 51 crore which was in Mr. Irani’s name and in the name of his wife, daughters and the Irani Family Maintenance Trust.
Mr. Irani was arrested in June by the Chennai Zonal Office of the Enforcement Directorate, under the Provisions of Money Laundering Act, 2002 (PMLA) and is currently under judicial remand at Puzhal Central Prison.
First Leasing Company of India is a non-banking financial company registered with the RBI. It was jointly promoted by Farouk Irani and A C Muthiah, the promoter of SPIC.
Rs. 1,000-crore gap
In 2013, the company told its bankers about a Rs. 1,000-crore gap in its balance sheet, following which RBI directed the firm to cease operations.
The company had falsified its accounts to obtain bank loans. Based on the complaints by the banks, the CBI - Bank Securities and Fraud Cell, Bengaluru, registered an FIR and started investigations into the Rs 522 crore bank loan fraud case.
Residential properties at Kotturpuram and Sholinganallur valued at Rs. 18.5 crore and Rs. 6.5 crore attached
