Shiv Sena MLA Sarnaik joins ED’s probe into ‘money laundering’ by TOPSGRUP

ED believes Sena leader Pratap Sarnaik had a role to play in managing the contract between MMRDA and TOPSGRUP. by inflating the number of contracted security guards deployed at the cost of MMRDA and to procure illegal cash gratification for Sarnaik for facilitating the alleged irregularities

Shiv Sena MLA Pratap Sarnaik, on Thursday, joined Enforcement Directorate’s (ED) money laundering probe linked to security service giant TOPSGRUP, owned by Rahul Nanda. The central agency suspects that the Sena legislator was involved in alleged financial irregularities and received kickbacks from the security company that was providing services to Mumbai Metropolitan Region Development Authority (MMRDA). However, Sarnaik has been refuting all the accusations alleging a political vendetta.

Shiv Sena MLA Pratap Sarnaik has denied any wrongdoing and alleged that he was a victim of political vendetta.(Kunal Patil/HT Photo)

Sarnaik, who has secured interim relief from the Supreme Court in the case, reached the ED office around 11.30am on Thursday for enquiry.

ED officials aware of the developments in the probe said that the anti-money laundering agency wishes to grill Sarnaik in connection with the suspicious funds transfers linking MMRDA security service contracts and Nanda.

Nanda, too, has denied all the allegations against him in the past and said that Sarniak was his old friend but his company had no business with Sarnaik or Shiv Sena.

Earlier, the agency raided several premises linked to Sarnaik and others in Mumbai and Thane. Later, the ED arrested Sarnaik’s close associate Amit Chandole last month and also TOPSGrup’s managing director M Shashidharan in the case.

“Topsgrup had obtained a contract for providing security guards for the MMRDA projects in collusion with Pratap Sarnaik through illegal means by a well-thought out strategy,” ED had claimed.

The agency claimed that the aim of these allegedly ‘illegal’ manoeuvres was to get additional benefits by inflating the number of contracted security guards deployed at the cost of MMRDA and to procure illegal cash gratification for Sarnaik for facilitating the alleged irregularities.

For his ‘active’ role and ‘criminal conspiracy’, Sarnaik used to get 50% profit earned out of the said contract, and sometimes, the money used to be transferred to the account of a third person, said the ED officials. Chandole accepted the receipt of cash from Topsgrup for the MMRDA projects, ED claimed. Therefore, part of the amount received by Topsgrup from MMRDA appears to be proceeds of crime, said ED.

Previously Sarnaik had claimed that he was being targeted by the Central agency for taking a stance against actor Kangana Ranaut and Republic TV editor-in-chief Arnab Goswami.

He even claimed that the ED officials told his son that his father (Sarnaik) spoke a lot on Ranaut and Goswami.

‘I will continue to speak wherever Mumbai, Maharashtra or its police are maligned. I have done nothing wrong in my business,” he said last week after ED raided his properties and questioned his son, Vihang, who has been summoned for the second round of questioning.

The agency said that other people linked to Sarnaik’s businesses would soon be asked to join the probe.

ED’s money laundering probe against Nanda and his family members is based on an FIR registered by Mumbai’s Yellow Gate police on October 28 on the direction of 16th metropolitan magistrate court. The case was transferred to the Mumbai police economic offences wing (EOW) for further investigation.

The complaint filed by Ramesh lyer, the former chairman of Topsgrup, alleged that Nanda and others diverted huge funds from the firm’s accounts to various accounts in India and overseas. He further alleged that these funds were utilised by Nanda and others for their personal purposes such as purchasing property. The security firm was thus defrauded of Rs175 crore.

Iyer and Topsgrup’s former director of finance Amar Panghal, in their statements, said, that in 2014, a contract was signed by Topsgrup Services & Solutions Ltd with MMRDA, according to which, 350-500 guards had to be deployed at project sites on a monthly basis. While only 70% of the guards were actually deployed, the firm billed MMRDA for all the guards and charged the authority for their salaries and provident fund, ED stated before the court.

The duo reportedly also informed ED that huge cash amounts were withdrawn from the bank accounts of Topsgrup Services & Solutions Ltd and given to a former top executive. In financial year 2017-18, an amount of around Rs 92 lakh was handed over to the said executive and there was an arrangement with two persons, one of whom was Chandole, who got a monthly share of profits earned on the MMRDA contracts. In addition, a fixed commission of Rs 50,000 per month and Rs 500 per guard deployed was being paid to Chandole and the other man by the top executive, said ED.

As per the details provided by lyer, from May 2017 to June this year, the amount aggregating to Rs 2.36 crore has been shared as commission. Of the said amount, Rs 90 lakh was paid through bank transfers to Chandole and the other man. As per lyer, all these amounts are still being paid from Topsgrup’s bank accounts and a commission of around Rs 7 crore has been paid to the duo since 2014, when the contract with MMRDA was initiated.

During the course of investigation, the top executive’s statements were recorded on November 24 and 25, in which he purportedly said that Nanda acquired a United Kingdom (UK)-based firm, Shield Guarding Company Limited, in 2014 for around Rs 200-250 crore. On the pretext of meeting the expenses of the overseas company, Nanda used to allegedly siphon-off money from the Indian company for his and his family’s personal expenses, including buying several immovable properties in Dubai and the UK.