In the case of Peoples Group, Bhopal, Madhya Pradesh, against Suresh Narayan Vijaywargiya & others, the Directorate of Enforcement (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act, 2002 (PMLA). The ED is pleading for the conviction of the accused and the confiscation of their attached properties, which are valued at Rs. 230.4 Crore. On September 11, 2023, the Honorable Court granted the Prosecution’s Complaint recognition.
Three prosecution complaints against Suresh Narayan Vijaywargia (SN Vijaywargia), Late Ramvilas Vijaywargia, Peoples International, and Services were submitted by the Registrar of Companies, Ministry of Corporate Affairs, Gwalior, Madhya Pradesh, and served as the basis for the ED’s investigation. Section 447 of the Companies Act, 2013 applies to Pvt Ltd, PGH International Pvt Ltd, and Peoples General Hospital Pvt Ltd.
The results of the ED inquiry showed that S. N. Vijaywargia used the funds received as FDI to benefit himself and the businesses under his control through questionable ways and means, damaging the three businesses’ owners’ interests (Peoples International and Services Pvt Ltd. The recipients of the FDI were PGH International Pvt Ltd and Peoples General Hospital Pvt Ltd.
A total of Rs. 494 Crore in foreign direct investment was received by three Peoples Group companies between 2000 and 2011, but between 2000 and 2022, the money was siphoned off to S N Vijaywargia and related entities under his control in the form of interest-free (or extremely low interest) “loans,” “security deposits,” advances, and other similar names. This led to the creation of Rs. 594.65 crore in criminal proceeds.
It was also disclosed how S N Vijaywargia, Sarvajanik Parmarthik Jankalyan Nyas (SJPN), PG, and a public trust over which S N Vijaywargia held majority influence in his capacity as Trustee, used the aforementioned proceeds. Infrastructure and Services Pvt Ltd, a business in which S N Vijaywargia owns 99% of the shares, is used to acquire real estate and create assets. Before this, on November 1, 2023, ED issued a Provisional Attachment Order, attaching assets valued at Rs. 230.4 Crore.
