‘Bhujbals used Kolkata firms to launder money’
The investigations by the special investigating team (SIT) revealed that the Bhujbals allegedly laundered money through a maze of Kolkata-based companies.mumbai Updated: Mar 16, 2016 12:12 IST
The investigations by the special investigating team (SIT) revealed that the Bhujbals allegedly laundered money through a maze of Kolkata-based companies.
Sources said that investigators found a total of 11 Kolkata-based firms that invested in companies allegedly promoted by the Bhujbals. The Enforcement Directorate (ED) has alleged that the Bhujbals accepted cash in lieu of projects to contractors, channelled the illegal cash into various companies, and integrated it into business activities of the group companies.
Explaining the modus operandi of the alleged conversion of ‘black’ money to ‘white’, an officer said, “The investigations have pointed out that money was accepted in cash, which was later laundered through shell companies created for that purpose. Kolkata-based companies were investors that bought shares. A team visited Kolkata, and it found that many of these companies were also bogus. These companies may have got commissions for the same,” said an officer.
Sources pointed out that shares were bought at inflated rates. “It is a general rationale that one would invest in profit-making and huge companies. In this case, the Kolkata-based companies bought shares at inflated rates at companies that were too small. This raised our suspicion,” said the officer.
In its investigation, ED pointed out that “Shri Sunil Naik, chartered accountant, deposed that shares of M/s Parvesh Construction Pvt Ltd and M/s Armstrong Energy Pvt Ltd firms owned and controlled by Bhujbals were sold to dubious entities against cash at unrealistic high premiums of `990 per share and funds to the tune of `75 and `50 crores respectively were channeled by the method”.