ED arrest CA Rajesh Agarwal in links to Rs 8,000 crore PMLA case

The Enforcement Directorate (ED) on Monday arrested a Chartered Accountant with links to several leaders, including RJD chief Lalu Prasad's family, following a probe into the Rs 8,000 crore money laundering racket involving two Delhi-based brothers.

CA Rajesh Agarwal has been taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).
 
His arrest is not linked to his dealings with Lalu's daughter and Rajya Sabha MP Misa Bharti, who is facing allegations of money laundering raised by BJP leader, but with routing funds for Jain brothers Virendra and Surendra, who were arrested in the money laundering racket being run through shell firms.
 
"The running account of Agrawal in the cash books of 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 investment 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.
 
Agrawal has transacted in such manner for Rs 39.21 crore in 2009-10 alone, it said.
 
The modus operandi of 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. Funds were brought in by the mediators on behalf of the beneficiaries, it said.
 
Officials claimed Agarwal was instrumental in providing accommodation entries to many high-profile people to help launder their funds. These included those being probed by the Income Tax Department in the Rs 1,000 crore dubious land deals case allegedly linked to Prasad's family.
 
The agency had taken up investigation following a complaint filed by Serious Fraud Investigating Office (SFIO) in a Delhi court against Jain Brothers and others. Agrwal was accused of acting as a mediator between people possessing illegal money and the brothers.
 
During investigations, the ED said it came to light that Jagat Project Ltd converted its unaccounted money (Rs 62.20 crore)into apparently legitimate transactions by way of share subscription through 26 shell companies controlled by the brothers. In lieu of this, the brothers received Rs 1.11 crore through Agrawal.
 
Agrawal is claimed to have played a vital role in the transactions between the brothers and Jagat Projects Ltd. He is also associated with some transactions involving Mishail Packers and Printers Pvt Ltd, the ED said.