ED attaches assets worth ₹1,489 cr of Adarsh society
UNDER THE SCANNER Enforcement Directorate is investigating the society under Prevention of Money Laundering Act
It was found that the Adarsh Credit Cooperative Society Ltd was basically functioning as parallel banking institution in the garb of Multi State Cooperative Society to escape from periodical monitoring and audit of RBI
JAIPUR: The Directorate of Enforcement (ED), Jaipur, on Monday provisionally attached immovable and movable properties amounting to Rs 1,489 crores in the case of embezzlement of public deposits with Adarsh Credit Cooperative Society Ltd, which is being investigated under the Prevention of Money Laundering Act, 2002 (PMLA).
According to official statement released by the ED, the attached properties includes more than 500 land properties and buildings valuing around Rs 1,464.76 crores and fixed deposits/balance in various bank accounts of Rs 24.44 crores belonging to Adarsh Group of Companies, firms, limited liabili t y part nershi ps ( LLP) o f Mukesh Modi, Virendra Modi and his family. The properties are situated in Rajasthan, Haryana, New Delhi, Gujarat, Maharashtra and Uttar Pradesh.
ED, Jaipur, had initiated investigation by registering a case on March 22, 2019, under the provisions of PMLA, on the basis of a first information report (FIR) registered by the special operations group (SOG) of Rajasthan police on December 28 last year for the offences of cheating, criminal breach of trust, forgery of valuable security and criminal conspiracy against Mukesh Modi, Rahul Modi & others of Adarsh Group, officials of Adarsh Credit Cooperative Society Ltd and other private persons.
The FIR was registered on the basis of complaint of various investors against Mukesh Modi, Rahul Modi and others for not returning their money invested in Adarsh Credit Cooperative Society Ltd on maturity.
Four months later, in a multistate operation, the SOG in May
ED STATEMENT
this year had arrested 11 officebearers of the Adarsh Co-operative Society Limited(accsl) for allegedly siphoning off more than Rs 1,400 crore of investors’ funds.
After completion of investigation on certain loan accounts and other issues, the SOG Jaipur had filed its first interim chargesheet on 20.07.2019 against 14 persons including Mukesh Modi, Rahul Modi and others.
“It was found during investigation that Mukesh Modi and his family members and associates were directly or indirectly associated with the day-to-day functioning of Adarsh Credit Cooperative Society Ltd and they lured common people by offering high interest rates/return on their deposits/investments. It was found that the Adarsh Credit Cooperative Society Ltd was basically functioning as parallel banking institution in the garb of Multi State Cooperative Society to escape from periodical monitoring and audit of RBI,” the official statement of ED reads.
The statement added, “The investigations conducted under PMLA has so far revealed that Mukesh Modi in collusion with his relatives Virendra Modi, Rahul Modi and his other family members as also with his other associates including society’s officials, siphoned off depositors’ funds from Adarsh Credit Cooperative Society Ltd by way of inter linked fraudulent transactions. Circular transactions as also cash transactions through various bank accounts of the companies/firms of the group companies were found, which were subsequently parked in various immovable/movable properties.”
The ED also found in its investigation that Mukesh Modi, his relatives and associates incorporated several companies, firms, LLPS for sole purpose of diverting funds from ACCSL to their real estate business by way of availing fraudulent loans.
“It was found that huge funds of Adarsh Society were also diverted and siphoned off by way of exaggerated salaries, incentives and commissions to the own kin and companies/firms of Mukesh Modi and his family members. The actions of Mukesh Modi and others caused the society a huge loss to the tune of thousands of crores of rupees. Thus, proceeds of crime has been found generated as a result of criminal activity relating to scheduled offences which has resulted into provisional attachment of such properties,” said an ED official who didn’t wanted to be named. The attached properties belongs to Meenaxi Modi, wife of Mukesh Modi, Priyanka Modi daughter of Mukesh Modi, Vaibhav Lodha, son-in-law of Mukesh Modi, Virendra Modi, Bharat Modi, both brothers of Mukesh Modi and various close associates such as Riddhi Siddhi Group of Companies, firms and AOPS (Association Of Persons) of Mahendra Tak and other family members.