New Delhi: The Enforcement Directorate (ED) has arrested key accused Sai Chandrasekhar in an economic offence case involving ₹750 crore. The special money laundering court has also given seven-day custody to the investigative agency.
The Central agency produced the accused Sai Chandrasekhar before Saket district and sessions court and got the remand for custodial interrogation.
Earlier search operation was conducted at the residential and office premises of the accused.
ED initiated investigation under PMLA against Virkaran Awasty, Vinod Sirohi, KPMG India Pvt. Ltd. and others based on FIR registered by Economic Offence Wing, Delhi Police on basis of a complaint received from Hassad Netherlands B.V. and consequently filed charge sheet.
Hassad Netherlands B.V., a subsidiary of Hassad Food Company, was induced by Virkaran Awasty and Ritika Awasty, Directors of Bush Foods Overseas Pvt. Ltd., to part with funds amounting to $ 120 million (approximately Rs 750 crore) by misrepresenting the level of stocks and inventory.
On the basis of such misrepresentations the accused persons induced Hassad Netherlands B.V. to provide corporate guarantee for the outstanding amount of Rs 714 crores of credit facilities availed from the consortium of banks.
Credit facilities were availed by Bush Foods Overseas Pvt. Ltd. on the basis of non-existent stocks or inventory.
Investigation under PMLA revealed that Virkaran Awasty along with other directors created bogus stocks by inflating the inventory and fabricating financial statements of the company.
Investigation under PMLA revealed that Virkaran Awasty along with other directors created bogus stocks by inflating the inventory and fabricating financial statements of the company. Bulk transactions of sales and purchases were generated in order that Bush Foods could record increased turnover, profit margins and additional stock by generating approximately equal value of sales and purchases in a year. Artificial profit and artificial stock in the book value of inventory was recorded in the books by showing these bulk sales as domestic sales.
Sai Chandrasekhar was an employee of Hassad Foods Company and was part of team which evaluated the transactions. Sai Chandrasekhar colluded and conspired with Virkaran Awasty to cheat Hassad Netherlands. He had a pivotal role and responsibility in the business transactions between M/s Bush Foods Overseas Pvt. Ltd. and Hassad Netherlands B.V.
He also had a key role in negotiations, discussion and due diligence carried out by Hassad on Bush Foods. In lieu of manipulating the due diligence exercise in favour of M/s Bush Foods Pvt. Ltd. and knowing that the credentials of the company were not genuine and facilitating the transactions, Sai Chandrasekhar was paid illegal gratification by Virkaran Awasty to the tune of Rs. 20.79 crores.
Investigation also revealed that Sai Chandrasekhar acquired property located at Indiranagar, Bangalore worth Rs. 5.8 crore for which amount was transferred by Virkaran Awasty from his concern M/s V&R Overseas. Sai Chandrasekhar also received ‘Proceeds of crime’ to the tune of Rs. 1 crore in the account of his father and mother from Virkaran Awasty which was spent for medical treatment of his father.
Sai Chandrasekhar further received Rs. 13.79 crores from Virkaran Awasty in his company M/s Harin Ventures Limited, Dubai. Assets identified so far of the accused Sai Chandrashekhar located in Bangalore and Mumbai and movable assets in the form of balances in bank accounts totaling to Rs. 7 Crore have already been attached under PMLA.
Custodial interrogation of the accused and further investigation is under progress.
