New Delhi: The Enforcement Directorate (ED) has filed chargesheet against Sai Chandrasekhar, Virkaran Awasty, Ritika Awasty and M/s Bush Foods Overseas Pvt. Ltd. under Prevention of Money Laundering Act, 2002 (PMLA) in a case related to cheating.
Last month, the ED had arrested key accused Sai Chandrasekhar in an economic offence case involving ₹750 crore. The special money laundering court had also given seven-day custody to the investigative agency.
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.
