The Enforcement Directorate (ED) has unearthed a fake NGOs scam running in excess of Rs 400 crore, orchestrated by a chief engineer from Kanpur, UP. In a unique modus operandi, the engineer used a battery of female associates to operate fictitious bank accounts opened in the name of these NGOs.
The ED officials produced one Arun Kumar Mishra, chief engineer, Uttar Pradesh State Industrial Development Corporation before the special judge PS Teji on Friday.
The ED alleged "Mishra has a number of companies/firms/NGOs approximately 17 in number involved in money laundering and a number of his female associates."
According to the agency, Mishra recruited female associates to monitor and operate his fake bank accounts spread across different parts of north India. "His female associates have disclosed that he used their name; and forged their signature to open bank accounts," said senior official in ED.
Naveen Kumar Matta, counsel for ED, contended that Mishra has acquired several movable and immovable properties, including two properties in posh area of city — Prithivi Raj Road, New Delhi.
Initially, the CBI arrested Mishra in April 27, 2011 following complaints against him.
One MM Sharma, branch manager at PNB, Dehradun in his deposition said he had fraudulently made scores of false bank entries for Mishra in his branch. The CBI had discovered 66 fictitious accounts opened by Mishra in different branches of the PNB. The special court has remanded Mishra to seven days of police custody.