New Delhi: The Enforcement Directorate (ED) has attached properties worth Rs. 6.875 crore of Jain Brothers under the provision of Prevention of Money Laundering Act (PMLA), 2002.
These properties belong to the companies, M/s Utsav Securities Pvt Ltd, M/s Avail Financial Services Ltd and M/s Sital Leasing and Finance Ltd., all controlled by Jain Brothers.
Earlier, Serious Fraud Investigating Office (SFIO) had filed a criminal complaint against Jain Brothers and others in a Delhi court in connection with the case.
The SFIO investigated the affairs of M/s NKS Holdings Pvt. Ltd. and other 10 group of companies, controlled by Jain Brothers and found that in eight of these companies, approximately, an amount of Rs. 8000 crore was created as credits in the bank accounts through a rotational transfer of funds amongst these companies, which was eventually used for inflating the balance sheet.
Thus, huge accumulations of credits and debits have been achieved in these accounts with the help of rotation of funds amongst these accounts without there being actual movement of cash.
During the investigation, it was also revealed that the initial infusion of funds (Seed Money) for circular transactions in the bank accounts of these companies was Rs. 6.875 crore.
The other modus operandi of Jain Brothers was to launder the unaccounted money through the process of placement of funds, layering of transactions and the final integration of laundering money into the banking channel camouflaged as legitimate share premium transactions. Funds in cash were brought in by the mediators on behalf of the beneficiaries through the mediators.
The prosecution complaints against people involved in money laundering have already been filed before the Special Court, PMLA, Patiala House Courts, New Delhi.
Surendra Kumar Jain, Virendra Jain, and Rajesh Kumar Agarwal were also arrested by the ED during the course of investigations. The total attachment of properties made in this case so far is worth Rs. 73.895 Crore. Further investigation is in progress.