ED arrests Sanjay Jain in PMLA case lodged against IFFCO directors,indiabusinessport,com

New Delhi: The Enforcement Directorate (ED) has arrested businessman Sanjay Jain for his role in the IFFCO money laundering case. The case relates to illegal commissions worth more than 685 crore allegedly given to sons of IFFCO managing director and CEO Awasthi and Indian Potash Limited (IPL) managing director P S Gahlaut, as well as others, by overseas suppliers from 2007 to 2014.

Jain was produced before a special PMLA court, which remanded him to custody till 11 October, the federal probe agency said in a release.

The ED had initiated money laundering investigation on the basis of registration of a case by CBI dated 17 May 2021, against various suspects, including Udai Shanker Awasthi; Pankaj Jain, promoter of Jyoti Trading Corporation and Rare Earth Group, Dubai; Amarendra Dhari Singh; and others.

They were accused by the CBI for allegedly hatching criminal conspiracy, cheating and criminal misconduct.

The ED learnt in the investigation that Awasthi and others in IFFCO generated proceeds of crime and layered it through various unrelated entities and a part of the benefits was then transferred to the entities controlled by them.

“The allegations include receipt of illegal commission by the accused from the overseas suppliers through a complex web of fake commercial transactions through multiple entities registered outside India (controlled by the accused persons) to camouflage the fraudulent transactions as genuine,” the ED said in a press release.

“It is found U S Awasthi (father of Amol Awasthi and Anupam Awasthi) and Parvinder Singh Gahlaut (father of Vivek Gahlaut) wield considerable influence in the Fertilizer industry by virtue of their position as Managing Directors of IFFCO & Director of IPL (U.S. Awasthi) and Managing Director of IPL (Parvinder Singh Gahlaut). Such payment of commission to them through their sons bleed the coffers of IFFCO & IPL and is a fraud upon the shareholders of IFFCO & IPL which consists of many State Marketing Federations wherein stakes are held by various state governments,” it said.

During the investigation, ED has found that an amount of 37.12 crore and $6.18 million was received by Sanjay Jain in India through illicit means.

Earlier, the Directorate had arrested Jain’s business partner A.D. Singh and Alok Kumar Agarwal with whom he had business relations. Singh had also received 27.79 crore from Dubai through illicit means. Both Jain and Singh used the vehicle provided by Agarwal to receive the proceeds of crime in India.

The ED had also filed a prosecution complaint before a special court in 2021 against six accused. Investigation is underway.

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