ED files charge sheet in Sterling Biotech case that formed genesis of CBI fight

NEW DELHI: The Enforcement Directorate (ED), which investigates violations of foreign exchange rules, on Tuesday filed formal money laundering charges in a case involving pharmaceutical company Sterling Biotech that formed the genesis of the fight between Central Bureau of Investigation (CBI) chief Alok Verma and his deputy Rakesh Asthana.

According to the ED, the group has defrauded banks to the tune ~ 8,100 crore after taking loans from their domestic as well as foreign branches. Group promoters, brothers Nitin and Chetan Sandesara, are now on the run. The ED is initiating action under the Fugitive Economic Offenders Act against the Sandesara brothers.

The group’s premises were raided by the income tax department in 2011 and during searches a diary containing details of payments made by group executives to various bureaucrats and companies was recovered. Some of the payments were made to tax officers, too. The IT department handed over the case to the CBI for further action under the Prevention of Corruption Act and the ED was roped in to probe money laundering charges.

One of the diary entries was construed as payment made to Asthana, now special director in the CBI, and it was denoted “RA”. In October last year. CBI director Verma tried to stall Asthana’s promotion as special director on the basis of the diary entries, but the move failed.

In a later probe, the CBI found evidence that the “RA” stood for a running account which the company had with another firm. Asthana has alleged that the CBI deliberately kept the evidence that could have exonerated him under the wraps. The ED said cash to the tune of Rs 140 crore was withdrawn from the shell companies and used to bribe “public servants”.

The whereabouts of the promoters are not known to the investigating agencies.