INDIA. Mumbai: The Enforcement Directorate (ED) attached properties worth Rs. 230.4 crore of “Peoples Group” in Bhopal, Madhya Pradesh, under PMLA, on charges of using FDI money through dubious means and damaging the interests of the shareholders of its three companies.
The attached properties included colleges, schools, training centres, paper mills, newsprint machinery, etc., as the ED statement issued on Thursday read.
The Enforcement Directorate initiated an investigation on the basis of three prosecution complaints filed by the Registrar of Companies, Ministry of Corporate Affairs, Gwalior, Madhya Pradesh, against Suresh Narayan Vijaywargia (SN Vijaywargia) and the late Ramvilas Vijaywargia, Peoples International and Services Private Limited, PGH International Private Limited, and Peoples General Hospital Private Limited under Section 447 of the Companies Act, 2013.
N. Vijaywargia and entities under his control flourished by misusing the FDI money and damaging the interests of the shareholders of Peoples International and Services Private Limited, PGH International Private Limited, and Peoples General Hospital Private Limited, which had received the FDI.
Foreign direct investment amounting to Rs. 494 crore was received in these 3 companies of the “Peoples Group” during 2000–2011, and the same was syphoned off in the form of interest-free (or very low-interest) “loans”, “security deposits,” and advances during 2000–2022, to S. N. Vijaywargia and related entities under his control, resulting in the generation of Proceeds of Crime amounting to Rs. 594.65 crore.
It was further revealed that S. N. Vijaywargia, Sarvajanik Parmarthik Jankalyan Nyas (SJPN), a public trust controlled by Vijaywargia, and PG Infrastructure and Services Private Limited (whose 99% shares were held by Vijaywargia) used the proceeds of crime to purchase properties and create assets.
Bank Fraud
In another case, the Enforcement Directorate attached 18 properties worth Rs. 21.15 crore belonging to M/s Anmol Mines Pvt. Ltd. in the case of bank fraud by M/s Indian Technomac Co. Ltd. (M/s ITCOL) and others.
The attached properties included 07 lands and flats at Barbil, 6 lands at Khordha, one residential flat at Cuttack, and 4 properties at Bhubaneswar in Odisha.
ED initiated an investigation on the basis of an FIR registered by CID, Himachal Pradesh Police, against M/s Indian Technomac Co. Ltd. (ITCOL) and its promoters, alleging that directors of the M/s ITCOL, in connivance with the official staff of different companies and chartered accountants, syphoned off the loan availed from a consortium of banks.
M/s ITCOL obtained loans from a consortium of banks led by the Bank of India during 2009–2013 by submitting forged project reports and by showing fake sales in the name of dummy/shell companies. Besides, the loan taken by M/s ITCOL from the consortium of banks was not fully utilised for the purpose it was meant for.
M/s ITCOL utilised the loan amount on the purchase of fixed assets like land, crucibles, and the construction of structural works, etc. The company also made investments in sister concern M/s ITCOL Hydrocarbon Limited and in a joint venture with M/s Anmol Mines Pvt. Ltd. of Bhubaneshwar. The proceeds of crime amounting to Rs. 288.91 crore were already attached in 2019. Total attachments in this case till date stand at Rs. 310.06 crore.
Also Read: Israel Responds to Fatal Hamas Raid Amid Rising Tensions
