ED questions Ahmed Patel in money laundering case

A fortnight after he refused to appear citing Covid-19, the Enforcement Directorate (ED) on Saturday questioned senior Congress leader Ahmed Patel at his residence in connection with a money laundering case against Sandesara brothers of Vadodara-based pharma firm Sterling Biotech.

The investigators went to the 23-Mother Theresa Crescent Road residence of Patel, a Rajya Sabha MP, at around 11:30 AM and recorded his statement under the Prevention of Money Laundering Act (PMLA) for his alleged links with Nitin Sandesara and Chetan Sandesara, who are absconding.

Last year, the ED had questioned Patel's son Faisal and son-in-law Irfan Siddiqui in this case and recorded their statements based on a statement from Sandesara group employee Sunil Yadav who claimed he bore expenses of Rs 10 lakh for a party attended by Faisal, arranged his entry in a night club and once delivered Rs five lakh to his driver in Delhi. The Patels had denied the allegations.

"The people of (Prime Minister Narendra) Modi-ji and (Home Minister) Amit Shah-ji came. They came, asked me questions, I replied and they left," Patel was quoted by ANI as saying.

In a separate statement released after around eight-hour-long questioning., he said there is a "clear pattern" that the investigating agencies become active on the instructions of "one individual" whenever there is an election or the government is facing a crisis.

"‪Unfortunately, this time the Modi government’s failure to manage a economic, health and national security crisis is now so huge, that none of the agencies can help spin the narrative‬. Rather than fighting the pandemic and China, this government is more keen to fight the Opposition. ‪Nonetheless, our conscience is clear. We have nothing to hide, nor are we afraid to criticise and expose the government’s failures ‬and their past corruption," he said.

The money laundering case involving the Sandesara brothers is the offshoot of a CBI case and chargesheet filed in court against them in connection with the Rs 14,500 crore bank loan fraud. Patel was earlier asked to appear before the investigators on June 9, which was the second time, but he responded saying he is above 65 years and it would be risky for him to step out due to Covid-19.

Patel (70) was assured that adequate precaution would be taken at the ED headquarters but the Rajya Sabha MP cited that there were cases of Covid-19 in the agency's office. He was then told that he would be quizzed at his residence.

The ED calls it a bigger scam in volume compared to the case against Nirav Modi and Mehul Choksi where the total scam is pegged at Rs 13,400 crore.

Last year, the ED had questioned Patel's son Faisal and son-in-law Irfan Siddiqui in this case and recorded their statements based on a statement from Sandesara group employee Sunil Yadav who claimed he bore expenses of Rs 10 lakh for a party attended by Faisal, arranged his entry in a night club and once delivered Rs five lakh to his driver in Delhi. The Patels had denied the allegations.

The Sandesaras brothers, who are simultaneously probed by CBI and Income Tax Department, are suspected to be now in Nigeria. They are also suspected to have a nexus with high-profile politicians. The ED had also attached Sandesara brothers' assets worth around Rs 14,000 crore in India and abroad, including oil rigs in Nigeria and ships registered in Panama.

In July 2018, the ED had filed a chargesheet against Gujarat-based Sterling Biotech Ltd Director Rajbhushan Omprakash Dixit.

It had claimed that the loans were sanctioned by a consortium of banks like the Andhra Bank, UCO Bank, State Bank of India, Allahabad Bank and Bank of India. The banks have declared several outstanding loan accounts of various companies of Sterling Group including Sterling Biotech Ltd, Sterling Port Ltd, PMT Machines Ltd., Sterling SEZ and Infrastructure Ltd and Sterling Oil Resources Ltd as fraud

Three persons -- Delhi-based businessman Gagan Dhawan, former Andhra Bank director Anup Garg and Dixit were earlier arrested in the case. The ED had alleged that Dhawan helped the Directors of SBL in purchasing several properties.

"The facts of the case reveal that the amount involved in money laundering was layered through various inter-bank transfers and thereafter, integrated and then utilised by Dhawan to acquire the immovable property and rights therein attempting to show the same as untainted property which is likely to be concealed, transferred or dealt with in a manner which may frustrate the proceedings under the Act (PMLA)," the ED had said.