The Enforcement Directorate (ED) probing the multi-crore faculty recruitment case in West Bengal.
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A GDR is outlined as a negotiable monetary instrument issued by a depository financial institution and it allows an organization to achieve traders in capital markets overseas
The Enforcement Directorate on Friday mentioned it has connected belongings price greater than Rs 59 crore of a Person of Indian Origin (PIO) primarily based in London and another entities as a part of a cash laundering investigation linked to an alleged international depository receipts (GDR) rip-off.
A GDR is outlined as a negotiable monetary instrument issued by a depository financial institution and it allows an organization to achieve traders in capital markets overseas.
The properties belong to London-based Arun Panchariya, Sanjay Aggarwal and India Focus Cardinal Fund. The belongings with a complete worth of Rs 59.37 crore have been seized in a probe pertaining to Hyderabad-based Farmax India Limited, the ED mentioned in an announcement.
Panchariya and his linked entities like London-based Pan Asia Advisors Limited (now often called Global Finance and Capital Limited), India Focus Cardinal Fund and Vintage FZE (”Vintage” – now often called Alta Vista International FZE) alongside together with his associates like Aggarwal, Jalaj Batra and others designed and executed a ”fraudulent” GDR scheme in connivance with Farmax India Limited promoters/administrators Morthala Sreenivas Reddy and Morthala Malla Reddy to ”cheat and defraud the Indian traders”, the ED alleged.
According to guidelines, when GDR of an Indian firm is subscribed overseas, the proceeds are mandated to be repatriated to India except they’re deposited overseas to satisfy future foreign exchange necessities.
However, within the case of Farmax India Limited, GDR proceeds amounting to USD 71.91 million (equal to Rs 318 crore at prevailing trade price on the time of issuance of GDRs in June and August 2010) weren’t repatriated to India, at the same time as there have been no bonafide future foreign exchange necessities, the ED mentioned.
The GDR proceeds amounting to USD 56.57 million, which have been obtained in Farmax India Limited’s checking account in EURAM Bank, Austria have been pledged as safety in opposition to the mortgage taken by GDR subscriber Vintage FZE, it mentioned.
The cash laundering case stems from a Telangana Police FIR filed in opposition to the accused earlier.
(This story has not been edited by News18 employees and is printed from a syndicated news company feed – PTI)
Source: www.news18.com
