Mumbai: The special PMLA court has issued summons to Prakash Mehta of Kalpavruksha Developers and Dharmesh Jain, CMD Nirmal Lifestyle Ltd, for money laundering in connection with the foreign remittance scam.
They have been accused of assisting Farooq Shaikh and facilitated several to remit funds outside India and earned around Rs 100 crore as commission. Shaikh was booked by CBI in May 2017 for illegal foreign remittance.
CBI alleges Farooq Shaikh's involvement
CBI had claimed that Farooq was involved in foreign remittance equivalent to Rs.1464.30 crore to Hong Kong during the period from the year 2014 to 2016, and in lieu of that prime accused Mohammed Farooque Shaikh received the wrongful gain of Rs.67 crore towards commission.
While his younger brother Hussain illegally sent forex remittance in USD equivalent to Rs.724.02 crore to Hong Kong during 2014 to 2016, and in lieu of that received wrongful gain of Rs.33.34 crore towards commission.
Farooq Shaikh Used 13 Dummy Companies For Illegal Remittances
After CBI registered the case, ED began probe into money-laundering, whereby, the special public prosecutor Kavita Patil claimed Farooq remitted funds to accounts of 13 dummy companies.
Accused floated 13 entities by luring persons of small means to part with their personal details like PAN, Aadhar number, Ration Card and electricity bills. These details were utilized for opening multiple bank accounts wherein they were shown as proprietors or directors, in order to cause illegal remittances to foreign destinations, ED argued.
The special PMLA judge MG Deshpande, while issuing summons to the directors of the two real estate firms, had said that they assisted Farooq in laundering funds through his wife Aasma.
PMLA Judge's Verdict: Developers Assisted in Laundering Funds
"Aasma Farooque had transferred proceeds of crime to the tune of Rs.7 Crores to the account of M/s. Kalpavruksha Developers under the guise of purchase of Flat alongwith parking at Prabhadevi, Mumbai. "Investigation would further reveal that Prakash Mehta and M/s. Kalpavruksha Developers received an amount of Rs.7 Crores, out of the agreed consideration of Rs.7.07 Crores. Prakash Mehta did not take any steps to return the proceeds of crime to Farooque Shaikh and Aasma Farooque Shaikh. Mehta, being partner of M/s. Kalpavruksha Developers, intentionally held proceeds of crime amounting to Rs. 7 Crores and assisted Farooque Shaikh in integration of proceeds of crime and projecting tainted money as untainted," reads the court order.
Nirmal Lifestyle's Role
Meanwhile, for Nirmal Lifestyle the court observed, Jain received proceeds of crime worth Rs 48.24 lakhs, during the period from June 2015 to November, 2015 for purchasing 5 flats in the project of Nirmal Lifestyle. "The total consideration agreed between the parties was Rs.5.70 Crores. However, on receipt of meagre amount of Rs.48,24,418, Jain registered agreements in respect of 5 flats in the name of Aasma Farooque Shaikh. Jain did not take steps for recovery of the due amount from Farooque Shaikh and Aasma Farooque Shaikh. Jain intentionally held proceeds of crime amounting to Rs.48,24,418/- being CMD of M/s. Nirmal Lifestyle Ltd, Jain knowingly assisted in laundering the proceeds of the crime," the special court said.
Besides the two, ED has also made M/s GLS Electronic Industries Pvt. Ltd and its director Sanjay Singhania accused for assisting Farooq divert the proceeds of crime to the tune of Rs.9.87 Crores to purchase a manufacturing unit situated at Ranipur, Haridwar, Uttarakhand.