ED arrests four directors of Disc Assets Group on charges of defrauding public

The Enforcement Directorate (ED) has arrested four directors or key managerial persons of Disc Assets Group– N. Umashankar, N. Arun kumar, V. Janarthanan and A. Saravana Kumar— in a money laundering case on charges of defrauding the public to the tune of over ₹1,100 crore in a “Collective Investment Scheme”.

According to the ED, Disc Agrotech Ltd., also known as Disc Asset Promoters India Ltd. and Disc Asset Lead India Ltd., was incorporated in 2006. It is alleged that its directors Mr. Janarthanan, Ms. Umashankar, Mr. Arun Kumar, C. Srinivasan, T. Shyamchander and S. Jeevalatha had collected funds in instalments from many people in different parts of Tamil Nadu, promising them land or money with high interest in return.

A probe by the ED revealed that the company directors had floated several other entities, including Dal Marketing Solutions Pvt. Ltd. and Aiyan Marketing Solutions Pvt. Ltd. to collect money from the public on behalf of Disc Assets Lead India Ltd. by circumventing the legal impediments of the Securities and Exchange Board of India (SEBI) Act, and collected ₹1,273 crore.

The funds were used to buy immovable properties in Tamil Nadu, in the name of the company, its directors and other unrelated entities. A major portion was siphoned off through the entities floated by them with their close relatives as directors or partners.

The ED initiated investigation under PMLA, 2002, based on the FIR registered by the Economic Offences Wing of the Tamil Nadu Police. During the course of investigation, it was revealed that Disc Assets Lead India Ltd. and others had collected money amounting to over ₹1100 crore from the public. The money was diverted in the guise of investment in subsidiaries, as payment of royalty to the directors of the company or their family members, as dividends and as diversion to unrelated entities. The ED has also attached 1,081 properties worth ₹207 crore of the Group entities, a press release said. 

The accused had filed a special leave petition (SLP) before the Supreme Court against the order of Madras High Court. The SLP by the accused was dismissed by the apex Court on February 25. Accordingly, the ED arrested the accused on Saturday based on the non-bailable warrants issued by the Principal Special Judge for CBI Cases. It has remanded them in judicial custody.

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Printable version | Aug 6, 2022 8:11:53 am |