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CA close to Lalu's family arrested

Last Updated 23 May 2017, 20:31 IST

 Following a probe into the Rs 8,000 crore money laundering racket involving two Delhi-based brothers, the Enforcement Directorate (ED) on Monday arrested a chartered accountant with links to several leaders, including family members of RJD chief Lalu Prasad Yadav.

Rajesh Agarwal was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).

His arrest is not linked to his dealings with Misa Bharti, Lalu’s daughter and Rajya Sabha MP, who is facing allegations of money laundering.

Agarwal was held for routing funds for Jain brothers Virendra and Surendra, who were arrested in a money laundering racket run through shell firms.

“The running account of Agarwal in the cash books of the Jain brothers clearly establishes the close link between the inflow and outflow of funds in the form of so-called investments by way of share subscription. The so-called investments in shares of companies with no real business is nothing but accommodation entry given in lieu of cash received from the beneficiaries through Agarwal,” the ED said in a statement.

Agarwal has made transactions in such a manner for Rs 39.21 crore in 2009-10 alone, it said.
The modus operandi of the Jain Brothers was to launder the unaccounted money through the process of placement of funds, layering of transactions and the final integration of laundered money into the banking channel, camouflaged as legitimate share premium transactions.

The funds were brought in by mediators on behalf of the beneficiaries, it said. Officials said Agarwal was instrumental in providing accommodation entries to many high-profile people to help launder their funds. These include those being probed by the Income Tax Department in the Rs 1,000-crore land deal case reportedly linked to Lalu’s family.

The ED took up the investigation following a complaint by the Serious Fraud Investigating Office in a Delhi court against the Jain Brothers and others. Agarwal was accused of acting as a mediator between people possessing illegal money and the brothers.

The ED said that during the investigations, it came to light that Jagat Project Ltd converted its unaccounted money, amounting to Rs 62.20 crore, into legitimate transactions by way of share subscription through 26 shell companies controlled by the brothers.

The brothers received Rs 1.11 crore through Agarwal for the transaction. Agrawal is claimed to have played a vital role in the transactions between the brothers and Jagat Projects Ltd. The ED said that he is also associated with transactions involving Mishail Packers and Printers Pvt Ltd, which is allegedly linked to Misa Bharti.

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(Published 23 May 2017, 20:31 IST)

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