PF SCAM: ED LODGES MONEY LAUNDERING CASE
LUCKNOW : The Enforcement Directorate (ED) on Thursday registered an FIR under Prevention of Money Laundering Act (PMLA) in connection with monetary transactions exposed during investigation into UP Power Corporation Limited (UPPCL) employees’ provident fund investment scam. A senior ED official privy to the development confirmed the FIR was registered against some retired and serving officials of UPPCL and their acquaintances at ED’s Delhi unit.
LUCKNOW: The Enforcement Directorate (ED) on Thursday registered an FIR under Prevention of Money Laundering Act (PMLA) in connection with monetary transactions exposed during investigation into UP Power Corporation Limited (UPPCL) employees’ provident fund investment scam.
The employees’ provident fund of Rs 4,122.5 crore (Rs 41.22 billion) was invested in the Mumbai-based Dewan Housing Finance Corporation Limited (DHFL) between March 2018 and October 2019 in violation of norms and huge commission was allegedly earned by UPPCL officials through brokerage firms operated by their family members, friends and other acquaintances.
A senior ED official privy to the development confirmed the FIR was registered against some retired and serving officials of UPPCL and their acquaintances at ED’s Delhi unit.
He said deputy director of ED’s Special Investigation Team (SIT) Pramod Kumar had earlier visited Lucknow to meet officials of the Uttar Pradesh police’s Economic Offences Wing (EOW) which is probing the scam.
Earlier, an EOW official associated with the probe confirmed that the ED’s deputy director visited the EOW office on Tuesday and collected documents related to money transactions that had surfaced in the investigation as well as the copy of FIR registered in the matter on December 2.
He said the ED official also sought details of different bank accounts and 14 brokerage firms involved in money transactions in the scam.
Moreover, the ED officials prepared profiles of 14 people, including former managing director AP Mishra, former finance director Sudhanshu Dwivedi and former secretary of the employees’ trust Praveen Kumar Gupta who were arrested in the matter, he added.
Director general of EOW RP Singh had earlier written a letter to the ED director after huge illegal money transactions had come to light while investigating the UPPCL PF scam and requested him to look into the matter.
The probe so far revealed that over Rs 65 crore (Rs 650 million) was paid as commission to 14 brokerage firms hired to invest Rs 4,122.5 crore of UPPCL employees’ PF in multiple short-term fixed deposits with the DHFL since March 2017.
He said the amount of over Rs 65 crore was transferred to 14 bank accounts of brokerage firms, 12 of which had fake addresses and were floated only for the PF fund investment.
The promoters of these 12 brokerages firms were allegedly linked to senior UPPCL authorities involved in deciding the PF amount investment in DHFL.
SENIOR IAS OFFICER QUESTIONED
The EOW questioned senior IAS officer Alok Kumar, who was earlier posted as principal secretary, energy.
A senior EOW official confirmed that Kumar was questioned at his Gautampalli residence to know some important facts about the scam.
The IAS officer answered the questions for over 60 minutes, he added.