The Enforcement Directorate on Wednesday stated it has arrested the chairman-cum-managing director of a Kerala-based firm in a cash laundering probe linked to an alleged dishonest case.
CMD of Thrissur-based BRD group, William Verghese, was arrested underneath the provisions of the Prevention of Cash Laundering Act (PMLA) and he was despatched to seven days Enforcement Directorate (ED) custody by an Ernakulam court docket on Tuesday.
The company had booked Mr Verghese after taking cognisance of over 100 Kerala Police FIRs registered in opposition to him and others on the cost of dishonest quite a few buyers.
“The complainants stated they have been persuaded by Mr Verghese and others to take a position cash in numerous firms promoted by him like BRD Finance Ltd, BRD Securities Ltd, BRD Motors promising 18 per cent returns every year,” the ED stated in a press release.
“Initially cash was collected as investments and in a while issued share certificates however the group firms didn’t pay dividend as promised and issued bonus shares and cheated them,” the central company stated.
Round 140 FIRs have been registered in opposition to the accused throughout 2018-2019, it stated.
“The ED collected documentary proof, recorded the assertion of assorted individuals and likewise carried out searches in January on the premises of the group in Kunnamkulam and Kokkalai that included the residence of Mr Verghese in Edappally, Ernakulam,” the ED stated, including that a number of incriminating paperwork and data have been seized.
It was discovered that Mr Verghese shaped numerous entities and picked up cash from folks inside India and outdoors, it stated.
“It has been additionally discovered that numerous properties have been bought by Mr Verghese and others of their names out of funds thus collected which represents the proceeds of crime,” the ED alleged.
The ED termed Mr Verghese the “mastermind” of the alleged fraud.
David Raj, one of many administrators of the corporate and a detailed relative of Mr Verghese, travelled to Sharjah and registered an organization known as BRD Worldwide FZE, Hamriya Free Zone, Sharjah (UAE), the company stated, including that Verghese knew about Raj”s enterprise in that nation.
Mr Raj collected cash for investments from numerous non-resident Indians in UAE Dirhams promising 18 per cent return and later issued share certificates of the BRD group of firms in Kunnamkulam, Thrissur, in Indian rupees, it stated.
“These share certificates have been additionally issued on the fee of Rs 120 per share. The cash was collected by cheque drawn within the identify of BRD Finance Ltd,” the ED alleged.
Mr Verghese and others have been accumulating cash for investments from 2012 onwards and the method is constant, it stated.