The Enforcement Directorate (ED) has provisionally attached agricultural land here worth about ₹1.12 crore belonging to two brothers, who have been accused of money laundering using shell companies. The agency has also filed a charge sheet against the accused.
The action was taken on the basis of a probe conducted by the Serious Fraud Investigation Office (SFIO), which in its report alleged that Surendra and Virendra Jain had laundered ₹3,790 crore between 2004 and 2011. During 2009-10 alone, they allegedly laundered ₹561 crore for 559 clients with help from 56 intermediaries like chartered accountants and company secretaries.
While the SFIO has so far filed criminal complaints against 11 companies controlled or managed by the Jains, the ED had earlier attached assets worth ₹64.7 crore in the case. “Investigation revealed that Jagat Project Ltd. converted ₹64.7 crore into apparently legitimate transactions by way of share subscription by various companies,” said the agency.
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In all, ₹62.2 crore of the “unaccounted money” was laundered through 26 shell companies allegedly controlled by the Jain brothers. “In lieu of the accommodation entry of ₹62.2 crore, they received a consideration of about ₹1.12 crore,” alleged an official.
The ED said the Jains were providing accommodation entries by accepting funds from beneficiaries through mediators, which they would convert into share premium transactions in the beneficiary company. The duo was arrested in March. and are currently in judicial custody.