Mumbai-based tax consultant arrested in $125-million laundering case
The accused was held for his alleged role in money laundering for Geodesic Limited (GL).mumbai Updated: Apr 28, 2018 00:51 IST
The Enforcement Directorate (ED) has arrested a Mumbai-based chartered accountant and tax consultant, Dinesh Jajodia, 51, for his alleged role in money laundering for Geodesic Limited (GL), amounting to $125 million.
ED has alleged that Geodesic had defrauded shareholders and Foreign Currency Convertible Bonds (FCCB) holders by creating web of shell companies.
It collected funds through FCCB investments abroad, but failed to repay the amount to the London-based bank which acted as the trustee.
Jajodia was the director and authorised signatory of various overseas companies located in UAE, Hong Kong and British Virgin Islands.
“M/s. Geodesic Ltd. had raised $125 million under FCCB for which Citibank N.A. London acted as a trustee,” said a senior ED officer. “The utilisation of the funds was proposed as investment in foreign subsidiaries or new overseas acquisitions. The amount was first credited in the overseas account (Citibank London) of M/s. GL and thereafter, was transferred directly into the account of its overseas subsidiaries, M/s. Geodesic Holdings Limited, Mauritius and M/s. Geodesic Technology Solutions Limited, Hongkong.”
On maturity, M/s. Geodesic Ltd failed to repay the amount, which totalled to $157.06 million, to the London-based bank, the ED has alleged.
The investigation was conducted under the Prevention of Money Laundering Act (PMLA).