On 07.11.2022, the Directorate of Enforcement (ED) filed a Prosecution Complaint against William Verghese, Chairman, M/s BRD Group of Companies, and 5 others before the Honorable PMLA Special Court Ernakulam. The Prosecution Complaint submitted by the ED on November 18, 2022, has been acknowledged by the Honorable Court.
ED began an inquiry into money laundering based on FIRs filed by the Kerala Police under sections 406 and 420 of the IPC 1860. In order to make quick money, the accused individuals lured numerous members of the public and investors with promises of 18% interest per year on deposits and investments. They did this without first receiving the approval of any statutory authorities. Later, they gave the depositors shares of the group firms with a face value of Rs. 10 in place of the cash they had previously received by setting the share price at Rs. 120.
The investors were also given the assurance that the corporations would eventually repurchase the shares for Rs. 120 each. However, neither the 18% returns that were promised to investors nor the shares were bought back. Due to the accused’s refusal to repay the principal sum, investors were duped, which resulted in the accused’s illegitimate enrichment.
Following an investigation by the ED, it was discovered that C.C. William Verghese, the Chairman of the BRD Group, had engaged in cheating with the intention of making illegal money with a dishonest intention during the aforementioned period by convincing various people to invest in the BRD Group of Companies and collecting various amounts from the general public/investors. He had bought several immovable properties in his name, jointly in his name with his wife Mary Williams, and the names of his companies, M/s. BRD Car World Limited & M/s. SML Finance Limited, using some of the funds so obtained, which are nothing more than Proceeds of Crime (POC).
All of the accused committed the crime of money laundering by acting with the same intent to defraud. On 08.02.2021, William Verghese was also detained by ED. The Hon’ble I Additional Sessions Judge (In charge of Sessions Judge), Ernakulam has subsequently granted him conditional release by Order dated 01.03.2021.
The Hon’ble Adjudicating Authority (PMLA), New Delhi revealed that ED has provisionally attached immovable properties worth Rs. 7.50 crore against the PoC. Further research is now being conducted.
