MP CM's nephew, Puri, led a luxurious life on a card issued by an accused scammer: ED
New Delhi, October 18 () The nephew of Madhya Pradesh Prime Minister Kamal Nath, Ratul Puri, led a luxurious lifestyle using a credit card issued by a Dubai-based hawala operator, accused in the scam of VVIP helicopters, to travel in private airplanes and visit nightclubs, the ED has said in its charge sheet in a case of money laundering of Rs 8,000 million rupees loans.
The central agency filed a lawsuit (charge) against Puri, his associates and Moser Baer India Ltd, a company promoted by his father, before a special court here Thursday.
The case registered under the criminal provision of the Money Laundering Prevention Act (PMLA) is related to the misappropriation of approximately 8 billion rupees of bank loans, the Executive Directorate said in a statement issued on Friday.
Probe revealed that Puri had transferred funds consisting of bank loans to several Moser Baer subsidiaries worldwide under the pretext of granting loans and investments.
In addition, Puri, with the help of several Hawala operators and professionals, created corporate structures in several jurisdictions and invested in the creation of assets, such as buying factories, movable goods and also to finance a luxurious lifestyle for which a Dubai-based hawala credit card operator Rajiv Saxena, the agency said.
Saxena, one of the main defendants in the case of money laundering of the VVIP ChrIP helicopters of Rs 3.600 crore, was deported to India from Dubai earlier this year.
The total amount spent on the credit card is USD 4.5 million that has been used for luxurious stays, vacation trips in private jets and nightclubs, the agency said.
Puri, who has been executive director at Moser Baer, was arrested by the agency in this case in August and is currently in judicial custody.
He and his family have denied any irregularities on their part.
The ED said that loans worth Rs 7,979.30 million rupees, taken from several banks, have been misused and misappropriated by Moser Baer, its directors/promoters for their own use and then transferred to the companies from the Hindustan Power Group of Puri.
To take advantage of the loan and for the restructuring of the corporate debt, an invented document was sent to the bank showing the infusion of the promoters' contribution, which in itself came from suspicious sources.
Corporate guarantees were granted to attract banks to disburse loans to subsidiaries beyond the net assets of Moser Baer, the ED claimed.
For a period of time, he said, accounts receivable were canceled and it was shown that investments decreased and were canceled.
No efforts were made to recover the amounts. Most subsidiaries have a financial liability pending with banks totaling Rs 7,979.30 crore, he said.
The DE case is based on a CBI FIR of August 17, where Puri, his father Deepak Puri, his mother Nita (sister of Kamal Nath) and others were registered in connection with a fraud case of Rs 354 crore bank presented by The Central Bank of India.
The bank said the company and its directors forged and fabricated documents to induce the Central Bank of India to release funds.
The IWC reserved the Puri family, as well as other people like Sanjay Jain and Vineet Sharma, for alleged criminal conspiracy, cheating, forgery and corruption.
The company manufactures optical storage media such as compact discs, DVDs, solid state storage devices. Ratul Puri faces the investigation of three main central research agencies, ED, CBI and the Department of Income Tax. NES NES MIN MIN