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Private firm staffer booked in Rs 220 crore money-laundering scam

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The Enforcement Directorate has booked an employee of a private firm and some other persons for allegedly siphoning off Rs 220 crore from government agencies like MMRDA, MTDC and APMC. Vimal Barot, a staffer of Showman Group, and others, including a bank staffer, have been booked under Prevention of Money Laundering Act (PMLA), an ED officer said on Tuesday.

In July this year, CBI's Economic Offence Wing had booked Barot and bank employee Pritam Nagarkar for using fix deposits of MMRDA, MTDC and five other organisations to draw loans using cash credit facility. Under this facility, a customer can withdraw money from a bank against their FDs.

"CBI booked them for swindling money on the pretext of helping the government agencies park their surplus cash as FDs at a state-run bank," said an ED official.

The scam came to fore when these agencies got in touch with the bank and learnt their money had been withdrawn illegally. Barot and Nagarkar first raised FDs worth Rs 250 crore and later allegedly used the cash-credit facility to take out Rs 220 crore posing as financial advisors to these government bodies.

ED is a specialised financial investigation agency of the central government which handles cases related to PMLA (where proceeds of crime are transformed into legitimate money or other assets) and Foreign Exchange Management Act.

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