The Enforcement Directorate (ED) filed its supplementary chargesheet in court in the over Rs 8,100 crore bank loan fraud case against Gujarat-based Sterling Biotech Group. Interestingly, CBI special director Rakesh Asthana wasn't named in the chargesheet, though CBI director Alok Kumar Verma has accused Asthana of being involved in the case.
The ED filed the fresh supplementary probe report before additional sessions judge Satish Kumar Arora. The agency named 191 accused in the case, including 184 companies and seven individuals. The agency said that 179 of the 184 are shell companies.
The agency said that to fulfil their criminal motive of defrauding banks, the promoters devised a multi-layered strategy, whereby they not only cheated banks but also the revenue department and shareholders. This included incorporation of shell companies, conduction of circular transactions to artificially inflate turnover of flagship companies, claiming higher depreciation on existing machinery, artificial share trading with the use of shell companies, and the layering and laundering of proceeds of crime within India and abroad through web of companies.
Investigation has revealed that promoters used their employees' names and incorporated 249 shell companies. "Original PAN cards, stamps, seals, memorandums of association and signed but blank cheque books of shell companies have been seized from the promoters," said the ED.
All these companies were controlled, managed and beneficially owned by the promoter and were actually used in the process of money laundering, the ED added.
