The Enforcement Directorate (ED) on Friday moved a Delhi court requesting that the absconding promoters of Vadodara-based Sterling Biotech group, who are wanted in ₹.8,100 crore money laundering case, be declared fugitive economic offenders.
The ED also sought the confiscation of their assets if they fail to comply with the court notice for personal appearance. It has so far attached assets worth ₹.4,710 crore in the case.
The ED moved the application against Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel, who are suspected to have fled abroad.
Earlier this week, the ED filed another charge sheet against 191 entities, including seven individuals, in the money laundering case, alleging that they had cheated banks of ₹.8,100 crore.
The investigation involved a scrutiny of more than 15 lakh papers and digital records.
The total outstanding amount, including the interest portion, with respect to the Sterling group is now ₹.13,754 crore against the group and the promoters.
Based on an FIR registered by the CBI against the group's promoters and others, the Directorate initiated its probe on August 2017.
Among those named in the latest charge sheet are 179 shell companies, through which the funds were allegedly laundered, the Sterling group promoters, chartered accountant Hemant Hathi and alleged middleman Gagan Dhawan.
“Investigations have revealed that the Sandesaras, who are absconding, and others hatched a conspiracy to cheat the banks. They manipulated figures in the balance sheets of their flagship companies and induced the banks into sanctioning higher loans. The funds so raised were diverted for non-mandated purposes through a web of shell companies,” the agency had said.
The loan fraud pertains to domestic as well as offshore branches of Indian banks. The promoters allegedly devised a multi-layered strategy to cheat the banks, the Revenue Department and the shareholders.
“It included incorporation of shell firms, carrying out circular transactions to inflate turnover of flagship companies, claiming higher depreciation on non-existing machinery, artificial share trading, and money laundering within India and abroad through the shell companies,” the agency said.
The promoters had used their employees’ names to incorporate 249 shell companies. The original PAN cards, stamps, seals, Memorandum of Association and signed blank cheque books of the shell companies have been seized by the ED, as alleged.
The accused set up more than 100 entities in various countries, including the United Arab Emirates, the United States, United Kingdom, British Virgin Islands, Mauritius, Barbados and Nigeria. “The funds were rotated through various structures and ultimately carried to Nigeria to finance their oil business,” said the Directorate.
The ED had so far arrested Dhawan, former Andhra Bank Director Anup Garg, Sterling Biotech director R.B. Dixit and Ranjeet Malik, the agency said.
