The Enforcement Directorate has attached assets worth Rs 452 crore of a Singapore-based “shell” company in connection with its money laundering probe in the IL&FS money laundering case, the agency said on Tuesday.
The assets, provisionally attached under the provisions of Prevention of Money Laundering Act (PMLA), are in the form of shares “belonging” to AS Coal Pte Singapore, a shell company owned by British national Jaimin Vyas, the central probe agency said in a statement.
“The attached assets are in the form of 8.86 per cent shares of IL&FS Tamil Nadu Power Company Limited (ITPCL) presently worth around Rs 452 crore,” it said.
This 2019 money laundering case stems from a Delhi Police Economic Offences Wing FIR filed against two group companies of IL&FS, its officials and others.
The ED also took cognisance of a compliant filed by the Serious Fraud Investigation Office or SFIO, against IL&FS Financial Services and its officials.
The ED said its probe found that there “was a well planned conspiracy to defraud IL&FS and Indian banks by Jaimin Vyas in connivance with officials of IL&FS and a Chinese EPC contractor named SEPCO III”.
“The company’s right to select the EPC (engineering, procurement and construction) contractor was illegally delegated to Jaimin Vyas, violating the terms and conditions of share purchase agreement,” it alleged.
Jaimin Vyas, it said, nominated SEPCO as EPC contractor and got “kick backs” in guise of fees for consultancy services.
“The same money was routed as equity investment in IL&FS Tamil Nadu Power Company Limited (ITPCL). Subsequently, ITPCL paid SEPCO III the amount (paid earlier by SEPCO to Vyas) by inflating the value of the contract and payments were also made in the guise of early completion of project,” it claimed.
“Jaimin Vyas received illegal gratification from Noble Coal in lieu of awarding coal supply contract (to ITPCL) at an inflated rate,” the agency alleged.
The agnecy said in the charge sheet that the senior management of IL&FS indulged in acts of commissions and omissions leading to illegal personal gains to them at the expense of the company.