Yes Bank case: ED files prosecution complaint against Omkar Developers, actor
The Enforcement Directorate (ED) on Thursday filed before the special PMLA court a prosecution complaint against real estate group Omkar Developers promoters Babulal Varma, Kamal Kishore Gupta, actor Sachiin Joshi, and others in ₹410 crore Yes Bank loan fraud and money laundering case.
The ED said Omkar Developers took huge loans on a slum rehabilitation project and later diverted the loans for some other purposes.
Varma, 50, and Gupta, 62 have been arrested on January 27, 2021.The money laundering case against them is based on a First Information Report registered by Aurangabad police in March 2020 for alleged cheating and criminal breach of trust.
ED stated that Omkar Realtors and Developers Pvt Ltd and its directors bought a firm, Surana Construction, which had secured rights for redevelopment of Anand Nagar Slum Rehabilitation Authority Cooperative Housing Society at Wadala. However, Omkar and its promoters did not pay back the due amount to the seller and also took huge loans against the project.
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Later, ED also arrested businessman and actor Sachiin Joshi on February 14 after investigations revealed that he, son of Gutkha baron JM Joshi, helped Omkar Group promoters in diversion of at least ₹87 crore.
ED said Joshi received the funds from various firms of Omkar Group, a part of which was shown as an investment and the rest as received against rendering of services.
When questioned about funds received as investment, Joshi said the same was sent for development of land near Pune.
It is surprising that an amount of ₹48 crore is shown as an investment, but except for simple term sheet dated March 15, 2019, no definite agreement is made. On analysing the actual utilisation of the funds, it shows that the said funds were utilised for various purposes such as repayment of loans, various expenses etc. However, no expense is seen to be incurred towards the stated purpose of investment,” ED earlier stated in their remand application.
Investigation of the funds received against various invoices showed it was done so to facilitate settlement of ineligible tenants and possession of constructed rehabilitation units, help in getting consents from society, slum dwellers, committee members, brokerage towards land deal, etc.
However, when Joshi was asked about whether any such services were actually rendered, he said no slum rehabilitation work was done by him. He, however, added that he was involved in facilitation with Omkar Group, where Omkar Group was to use his name and brand name in order to rehabilitate the tenants or settle with the tenants.