The Enforcement Directorate (ED) on Tuesday attached assets worth Rs36 crore owned by Chhattisgarh cadre IAS officer Bl Agrawal, who allegedly laundered money through fake bank accounts, informs an official press release issued here.
Agrawal was arrested by the Central Bureau of Investigation (CBI) on February 21 this year on charge of trying to ‘settle’ a case being probed by the central agency against him, it may be recalled.
ED has attached assets worth Rs36.09 crore under the PMlA (Prevention of Money laundering Act). The attached property belongs to Agrawal and Raipur-based Prime Ispat ltd, a company owned by his brothers, the press release informed.
Agarwal laundered money amassed by him through various fake bank accounts. With active connivance of bank officials, Agrawal is alleged to have opened 446 benami bank accounts in the names of villagers in the Union Bank of India, Raipur, the release further said.
The cash deposited in the accounts was channelised to shell companies as share application money and thereafter, the shell companies invested the said money as equity at a large premium in Prime Ispat ltd, said the agency press note.
These equity shares belonging to the shell companies were purchased, in the end, by sister concerns of Prime Ispat ltd, thus leaving the control of the entire tainted money with Babulal Agrawal and his brothers, it said. The money was also used for investing in factory building, land and machinery and other immovable properties of the company. Funds were moved from the benami bank accounts to 13 shell companies operated by Agrawal, by way of investment, the press release added.
In total, the 13 shell companies received investment in its equity to the extent of Rs39.67 crore. The ED so far has attached Rs4.40 crore worth of land,Rs23.89 crore worth plant and machinery, Rs7.07 crore worth of factory building as well as a vehicle and residential building belonging to Agrawal, the press release further said.
The CBI had in 2010 registered cases against Agrawal on charges relating to impersonation, cheating and disproportionate assets. The Chhattisgarh Police, too, had registered a disproportionate assets case against him, it may be recalled.