The Enforcement Directorate has arrested a Chartered Accountant (CA) for alleged role in a ₹8,000-crore money laundering racket, in which two brothers were recently arrested on charges of running shell companies. The agency alleges that he had also facilitated some transactions of a company associated with RJD chief Lalu Prasad’s daughter Misa Bharti.
3-day custody
Chartered Accountant Rajesh Agrawal was produced before a Delhi court that granted his three-day custody to the ED on Tuesday.
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“Mr. Agrawal has been arrested in a money laundering case against Surendra and Virendra Jain, which was registered on the basis of Serious Fraud Investigation Office probe. He operated as a mediator between the Jains, who ran shell companies, and those looking for getting their unaccounted money laundered,” said a senior ED official.
The official said: “The ED probe has revealed that through the accused, the sale of 1.2 lakh shares of Mishail Packers and Printers Pvt Ltd at a premium of ₹100 per unit was allegedly made to three companies about a decade ago. The shares were later bought back at ₹10 each. An agricultural property was also purchased. Mr. Yadav’s daughter Misa Bharti and her husband are shareholders and directors of the company in question.”
In a release, the ED said the Chartered Accountant was also “associated with some transactions involving Mishail Packers and Printers Pvt Ltd.”
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Share subscription
In the case of another company, Jagat Project Limited, the accused got ₹62.20 crore laundered by way of share subscription through 26 shell companies controlled by the Jains. “In lieu of the above accommodation entry for ₹62.20 crore, the Jain brothers received about ₹1.12 crore through Mr. Agrawal. Assets worth the said amount have already been attached provisionally,” said the agency.
The agency has charged the Jains with providing accommodation entries by accepting funds through mediators like Mr. Agrawal and converting the same into share premium transactions in the beneficiary company for a certain percentage of the unaccounted money. The Jains maintained a ledger account in the name of Mr. Agrawal.
It is alleged that the running account of Mr. Agrawal in the cash books of Jain brothers “clearly establishes” the close link between the inflow of funds into the cash books and outflow of the same in the form of so-called investments by way of share subscription.
“Thus, the so-called investment in the shares of companies with no real business is nothing but accommodation entry given in lieu of cash received from the beneficiaries through Mr. Agrawal. He had transacted in such manner for over ₹39.21 crore in 2009-10 alone,” said the agency.