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ED attaches assets of SRS Group under PMLA

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The Enforcement Directorate (ED) has attached assets worth ₹2,510.82 crore of the SRS Group, its promoters, their family members and associate companies, in connection with cheating and fraud cases.

The properties attached under the Prevention of Money Laundering Act include parcels of land, real-estate projects, commercial projects, residential houses, and a school, cinema hall and cash in bank accounts.

Over 20 cases

The ED’s action is based on over 20 criminal cases registered at various police stations in Haryana’s Faridabad, and the charge-sheets filed by the State Police. A separate FIR was registered by the Economic Offences Wing of the Delhi Police in the same matter.

According to the Agency, accused Anil Jindal, Jitender Kumar Garg and Praveen Kumar Kapoor were the key promoters of the SRS Group. In April 2018, the Faridabad Police had arrested Mr. Jindal and four others on allegations of cheating investors.

The accused, along with his accomplices, lured investments from individuals and institutions in its projects on the promise of high returns. The funds were later siphoned off and diverted to group firms via various shell companies of the SRS Group having dummy directors, who were mainly the Group’s employees.

‘Investors in dark’

“They presented fabricated balance sheets in order to enhance their turnover and balance sheets. They kept investors in the dark by not giving them specific investment plans. In order to sustain their illegal investment schemes, they availed themselves of loans that were used for repayments and to develop their other projects,” alleged the Agency.

The schemes did not have any prudent financial structure, indicating that all was done as part of a conspiracy to cheat investors, as alleged.

“Accordingly, the movable and immovable properties illegally acquired in the name of various companies of the SRS Group and family members of accused, being proceeds of the crime, have been provisionally attached,” said an official.

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Printable version | Jan 26, 2020 5:25:17 AM | https://www.thehindu.com/news/national/ed-attaches-assets-of-srs-group-under-pmla/article30524014.ece

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