Former IAS officer penalized over misappropriation of public fund, ED attaches assets worth Rs 14.15 crore

New Delhi: The Enforcement Directorate (ED) has attached assets worth Rs. 14.15 crore held in the name of Neesa Leisure Ltd., Neesa Infrastructure Ltd. and Euclid Constructions Ltd. All Neesa group of companies owned/controlled by Sanjay Gupta, former IAS officer under Prevention of Money Laundering Act, 2002 (PMLA) in a case of criminal misconduct & misappropriation of funds of Metro Link Express for Gandhinagar and Ahmedabad Company Ltd, (MEGA).

The attached properties include a flat at Sector-62, Noida, Industrial Plots at Dahej SEZ, Dahej, Gujarat and Hotel Cambay at Thaltej, Ahmedabad.

Based on FIR and Chargesheets filed by CID Crime, Gandhinagar Zone under sections 418, 467, 471, 120-B of IPC, 1980 and section 13(1)(c), 13(1)(d)(ii) of Prevention of Corruption Act, 1988, ED initiated investigation under PMLA against Sanjay Gupta and others for misappropriation of public funds from MEGA.

Accused ex-IAS quit govt job, started own business in 2002

Accused Sanjay Gupta was a 1985 batch IAS officer of Gujarat cadre who quit the service in the year 2002 and started his own hospitality business in the name of Neesa Group of companies. He became Chairman, MEGA in April 2011 and continued till August 2013. Investigation under PMLA revealed that Sanjay Gupta during his tenure as Chairman, MEGA, arbitrarily appointed his close associates in various official positions in MEGA who were previously working with him in Neesa Group.

Accused Sanjay Gupta also floated a number of paper/dummy companies with these employee as Directors and got opened bank accounts of these companies during 2012-13. These fictitious companies further raised fabricated/bogus bills/invoices to MEGA without any supply of Goods/Services. Investigation also revealed that Sanjay Gupta didn’t adopt any procedure for awarding of work contract in MEGA through wide circulation of advertisement in media/newspapers. The dummy companies were awarded contract on the pretext for supply of goods/services to MEGA and bogus bills/invoices were raised. These bogus bills/invoices were certified by the illegally recruited MEGA officials and payments were finally approved by him, as the administrative and financial powers were vested with him. Accused Sanjay Gupta also arranged for deposit of illicit cash and DD/Cheques in the account of these dummy companies, which was generated through purported cheque discounters and in the guise of consideration of allotment of contracts in MEGA.

In this manner the proceeds of crime totalling to the tune Rs. 65.73 crore were received from MEGA through bogus bills/invoices as well as illicit Cash/DD/Cheques deposits in the accounts of the dummy companies floated and controlled by Sanjay Gupta.

Proceeds of crime diverted to Neesa’s accounts

Investigation under PMLA revealed that out of the these proceeds of crime, an amount of Rs. 14.15 crore were layered and diverted to the accounts Neesa Leisure Ltd., Neesa Infrastructure Ltd. and Euclid Constructions Ltd., all Neesa group of companies owned/controlled by Sanjay Gupta, which were further utilised in business activities of the said companies and also for making repayments to their respective loan accounts and also utilised in miscellaneous payments/expenses. Accordingly, properties worth Rs. 14.15 crore being the part of proceeds have been identified and attached under PMLA. Earlier the proceeds of crime to the tune of Rs.36.12 crore have also been attached.