ED ar­rests former Andhra Bank of­fi­cial in fraud case

■ Anup Prakash Garg was ar­rested in con­nec­tion with its money laun­der­ing probe in the al­leged Rs 5,000 crore bank fraud case in­volv­ing a Gu­jarat-based pharma firm

The Hitavada - - NATION -

A FORMER Di­rec­tor of Andhra Bank has been ar­rested by the En­force­ment Direc­torate (ED) in con­nec­tion with its money laun­der­ing probe in the al­leged Rs 5,000 crore bank fraud case in­volv­ing a Gu­jarat-based pharma firm, of­fi­cial sources said on Satur­day.

They said Anup Prakash Garg was ar­rested by the agency late on Fri­day evening.

This is the sec­ond ar­rest in the case af­ter the agency in Novem­ber last year held Delhi-based busi­ness­man Ga­gan Dhawan from here. Garg has been ar­rested un­der the Pre­ven­tion of Money Laun­der­ing Act (PMLA) and is ex­pected to be prod­cted be­fore a spe­cial court.

Garg has been named as an ac­cused in the case by the En­force­ment Direc­torate and the CBI. The En­force­ment Direc­torate reg­is­tered a money laun­der­ing case in this in­stance ater tak­ing cog­ni­sance of an ear­lier CBI FIR.

The agency said it found dur­ing probe that “cer­tain en­tries” in a di­ary seized by the In­come Tax De­part­ment in 2011 showed var­i­ous cash pay­ments amount­ing to Rs 1.52 crore made to one “Mr. Garg, Di­rec­tor, Andhra Bank” be­tween 2008- 2009 by the San­desara broth­ers.

It said “var­i­ous cash pay­ments were made to Garg, as re­flected in the said en­tries, on the in­struc­tions of San­desara broth­ers, by with­draw­ing cash from the bank ac­counts of sev­eral be­nami com­pa­nies of the San­desara broth­ers”.

The En­force­ment Direc­torate had al­leged that Garg had in­fused sev­eral crores of his un­ac­counted cash in var­i­ous com­pa­nies through many Kolkata based bo­gus shell com­pa­nies with the help of cash/cheque en­try op­er­a­tors in Kolkata to laun­der the pro­ceeds of crime ob­tained by him from the San­desaras.

The CBI had booked Ster­ling Biotech, its direc­tors Chetan Jayan­ti­lal San­desara, Dipti Chetan San­desara, Ra­jb­hushan Om­prakash Dixit, Nitin Jayan­ti­lal San­desara and Vi­las Joshi, char­tered ac­coun­tant He­mant Hathi, Garg and some uniden­ti­fied per­sons in con­nec­tion with the al­leged bank fraud case.

It had al­leged that the com­pany had taken loans of over Rs 5,000 crore from a con­sor­tium led by Andhra Bank which had turned into non-per­form­ing as­sets.

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