ED attaches Sena MLA’s flats, land worth ₹11.35 cr in NSEL scam

In October 2013, ED had registered a money laundering case under the provisions of Prevention of Money Laundering, 2002, in connection with the NSEL fraud

Mumbai The Enforcement Directorate (ED) provisionally attached properties worth ₹11.35 crore – two flats in a building on Ghodbunder Road and a land parcel in Thane - belonging to firms controlled by Shiv Sena MLA Pratap Sarnaik and his family members on Friday, in connection with the National Spot Exchange Limited (NSEL) scam.

The original FIR is registered against NSEL directors and key officials, 25 defaulters of NSEL and others for allegedly hatching a criminal conspiracy to defraud the investors by inducing them to trade on NSEL platform (Praful Gangurde)

In October 2013, ED had registered a money laundering case under the provisions of Prevention of Money Laundering, 2002, in connection with the NSEL fraud, on the basis of an FIR registered by the Economic Offence Wing of the Mumbai Police on September 30, 2013.

The original FIR is registered against NSEL directors and key officials, 25 defaulters of NSEL and others for allegedly hatching a criminal conspiracy to defraud the investors by inducing them to trade on NSEL platform. The investigating agencies claimed that accordingly, the accused created forged documents like bogus warehouse receipts, falsified the accounts and thereby defrauded around 13,000 investors to the tune of ₹5,600 crore.

Investigation conducted by the ED has revealed that the money collected from various investors were diverted by borrowers/trading members of NSEL for other activities like investment into real estate, repayment of outstanding debts etc.

According to the ED release, the investigation further revealed that Aastha Group, consisting one of the defaulting members of the NSEL which had the liability of ₹242.66 crore towards NSE, has in 2012-13, diverted ₹21.74 crore to M/s Vihang Aastha Housing Projects LLP.

Out of ₹21.74 crore received by M/s Vihang Aastha Housing Projects LLP, ₹11.35 crore was transferred to M/s Vihang Enterprises and M/s Vihang Infrastructure Pvt. Ltd., both controlled by Pratap Sarnaik and his family members, said the release.

It added that on the basis of the money trail, the attached assets – two flats and the land parcel – were identified and provisionally attached under provisions of the PMLA, 2002.

According to the release, the remaining amount of ₹10.50 crore, originating from Aastha Group, was paid to Sarnaik’s close associate Yogesh Deshmukh and which has already been attached under PMLA. With this, the total value of the assets attached by the ED in NSEL case has gone up to ₹3,254 crore.