CBI finds 393 companies diverting funds
Multiple webs of shell companies have laundered money worth `2,900 crores
New Delhi, May 7: Multiple webs of 393 shell companies, allegedly diverting funds to the tune of `2900 crore was unearthed by the CBI. It was a result of the probes that the CBI conducted over the last three years.
CBI sources said the shell companies were allegedly being used to divert loan funds meant for specific purposes, creating fake invoices, and “round-tripping” of funds to evade taxes and generate black money.
Round-tripping is sending money abroad to tax havens in the guise of payments, for fake imports through shell companies, and bringing back that money showing it as foreign investment. The findings of the CBI are just a tip of the iceberg since these are only the cases where the agency has been able to find the legallytenable evidence of the money trail, said the sources who chose not to be named.
The activities were exposed during a CBI probe into various loan fraud cases involving 28 public sector banks and one private bank, said sources. Besides this, the agency is probing about 200 cases involving funds of at least `30,000 crore.
The CBI is prosecuting the companies for corruption and scheduled offences associated with it. Also, it will refer these cases to other investigating agencies for action under other laws like Companies Act, Prevention of Money Laundering Act, Benami Transactions (Prohibition) Act and the Income Tax Act etc, the sources added.
The agency took steps to curb the repeat of such activities. Sources said it that the shell companies might have been used to abet financial crimes by other offenders. The possibility will be probed by other agencies also. The companies are spread across the country, said sources.
Cases probed by the CBI include one against Century Communication Group that ran Mahua Channel. According to the agency’s charge sheets and FIRs, the group allegedly committed fraud to the tune of `3,000 crore.
It used over 98 shell companies to allegedly divert bank loans for setting up digital studios in Noida, Mumbai, Kolkata and other locations, said the CBI. They allegedly were used to divert funds showing fake equity infusion to the tune of `802 crore. — PTI