INDIA. Mumbai: The Directorate of Enforcement (ED) has taken legal action by filing a Prosecution Complaint under the Prevention of Money Laundering Act (PMLA), 2002 against Bhopal-based businessman Sanjay Vijay Shinde.
In a statement issued on Friday, the ED also named Shinde’s wife, Aparna Shinde, and his firm, M/s Venus Bay Offshore Ltd, in the charge sheet. It is worth noting that Shinde is engaged in the import-export business.
The charges pertain to the alleged accumulation of black money. The ED’s move follows the revelation of Shinde’s involvement in the Panama Papers leaks.
The PMLA Court in Bhopal acknowledged the complaint on Friday. The ED’s investigation was initiated based on a complaint filed by the Income Tax Department under Section 51 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 against Sanjay Vijay Shinde and others.
The ED’s investigation uncovered that Shinde, operating from Bhopal in Madhya Pradesh, established an offshore company in the tax haven of the British Virgin Islands, known as M/s Venus Bay Offshore Ltd. This company received Rs 21.87 crore in its bank accounts, maintained at UBS-AG Bank in Singapore.
Sanjay Vijay Shinde held the positions of sole director, shareholder, and beneficial owner of M/S Venus Bay Offshore.
However, he did not disclose his interest in the foreign company or the assets represented by the funds in foreign bank accounts in his Income Tax Return
Consequently, proceedings under the Black Money Act, 2015 were initiated against him, and a prosecution complaint under Sections 50 and 51 of the Act was filed by the Income Tax Department.
The ED’s investigation revealed that Shinde repatriated the funds from the BVI Company to India through the NRE/NRO accounts route.
He subsequently invested this money in FCNR-FD accounts. By liquidating these FDs, the funds were directed into various movable and immovable properties.
The accused used the proceeds of crime to acquire properties in Bhopal, Goa, Vadodara (Gujarat), and Mumbai. Additionally, the illicit funds were invested in mutual funds, shares, fixed deposits, LIC policies, and as capital investments in businesses.
During the course of the investigation, it was ascertained that the accused derived profits amounting to Rs 12.40 crore from the utilization of the proceeds of crime, resulting in the calculation of his total proceeds of crime as Rs 34.22 crore.
Earlier in the case, searches were conducted at various premises associated with Shinde, leading to the seizure of a cash amount of Rs 88.30 lakh and the discovery of various incriminating documents.
The ED has provisionally attached 18 immovable properties across Bhopal, Goa, Vadodara, and Mumbai, as well as movable properties in the form of investments in mutual funds, shares, fixed deposits, LIC, and vehicles valued at Rs 29.59 crore.
The case under PMLA against Shinde underscores the Indian authorities’ commitment to combating money laundering and prosecuting individuals linked to undisclosed foreign assets.
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