Former Jharkhand chief minister Madhu Koda, who is set to appear before the ED on November 15 in connection with the multi-crore illegal investment and hawala case, might find the going tough with his close associate Vikash Sinha said to have spilled the beans about the alleged illicit network.
ED sources said Sinha, who was brought to the national capital from Jharkhand on November 8, has admitted to large financial irregularities done by him and his brother Binod at the behest of Koda.
During questioning Vikash had admitted to using an alloy making firm to route Koda's illicit money through hawala network, the sources said.
They said he has also admitted about taking about Rs 40 crore in cash to Kolkata for illicit investments on behest of his brother, who was another close associate of the former chief minister.
Sources said Sinha, who was also questioned on the foreign trips taken by him along with other accused in the case, has also revealed trails of money and investments made abroad.
Sinha, who was today taken back to Jharkhand, was also jointly questioned by officials from Income Tax department and the Directorate on the documents seized by the former during its nationwide searches at about 76 locations of Koda and his
associates.
Refusing to elaborate on the statements of Sinha as it could hamper further investigation into the case, ED sources said Koda, who has been booked under Prevention of Money Laundering Act (PMLA), would now be questioned not only on the basis of documents seized but also on the statements of Sinha.
Sources said Sinha was also questioned on the Bollywood connections as his brother is known to have contacts in the film industry.
He was also questioned on his income tax returns which had seen a jump of about eight times in just two years.
Vikash, in his Income Tax returns, had mentioned Rs 2,94,526 as income during 2005-07 which increased to Rs 24 lakh during 2007-08.
He was also questioned on the role played by his brother, who is said to be one of the major players in the network and is currently evading ED officials.
