ED attaches seven sugar mills worth Rs 1,097 crore
LUCKNOW: The Enforcement Directorate (Lucknow zonal office) on Tuesday attached seven sugar mills in UP valuing over ₹1097 crore owned by former BSP MLC, Mohd Iqbal, and his family members under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, said senior ED officials. The sugar mills were located in Kushinagar, Bareilly, Deoria, Hardoi and Barabanki districts, they said.
Earlier, the ED had registered a case under PMLA against the former MLC from Saharanpur and others, based on the investigations conducted by Serious Fraud Investigation Office (SFIO), Ministry of Corporate Affairs, Delhi relating to acquisition of assets through illegitimate means in 2010-2011.
Namrata Marketing Pvt Ltd and Giriasho Company Pvt Ltd, under the control of the former MLA and his family, participated in the bidding process of disinvestment of sugar mills of the UP government in 2010-11. They acquired seven sugar mills through laundering of illegitimate money through shell companies having dummy directors, said a senior ED official.
He said the present valuation of land of seven sugar mills was around ₹1097,18,10,250 (one
thousand ninety seven crore eighteen lakh ten thousand two hundred fifty), but it was sold to the former MLA and his family members at throwaway prices (₹60.28 crore) through the disinvestment process.
“During the course of investigation, ED recorded statements of the former MLC’s key
associates as well as dummy directors of various companies. Evidences were also collected from banks, ministry of corporate affairs, district property registration authorities and income tax department. Further, search operations were conducted at the former MLC’s residence and his associates in
Saharanpur and premises in Delhi wherein incriminating documents, valuables and records were recovered,” the official added.
He said the investigation revealed that Namrata Marketing Pvt Ltd and Giriasho Company Pvt Ltd companies did not submit the shareholding pattern and background of key promoters, which were the stipulated conditions at the time of bidding.
It was noticed that the funds were infused either into these companies through cash deposits made in shell companies’ bank accounts and routed into these two companies through sham transactions, he said.