The Directorate of Enforcement (ED) has brought charges against three suspects under the Prevention of Money Laundering Act, 2002 (PMLA): Sumit Kumar, Shashikant Kumar, and Mannu Singh. Sumit Kumar was the former branch manager of Kotak Mahindra Bank’s Boring Road, Branch in Patna. On September 5, 2023, the Honourable Court was happy to recognise the charge of money laundering.
Based on an FIR filed by Gandhi Maidan Police Station in Patna, Bihar, under different sections of the IPC, 1960, the ED began an investigation. A charge sheet was then filed stating that fraudulent transactions of Rs. 31.93 Crore from these accounts were carried out, and funds were syphoned out from the bank accounts of the Competent Authority for Land Acquisition (CALA) and District Land Acquisition Officer (DLAO), creating a significant loss to the government exchequer.
Sumit Kumar the former branch manager of Kotak Mahindra Bank’s Boring Road, Branch was detained by ED on July 10, 2023, and searches were also conducted at the locations associated with Sumit Kumar and his family members on July 18, 2023, which led to the recovery of digital devices and incriminating documents containing details of investments made by Sumit Kumar and his family. The ED investigation revealed that Sumit Kumar was involved in carrying out fraudulent transactions and syphoning off government funds from the bank account of CALA cum DALA.
It is further noted that Shashikant Kumar, one of Sumit Kumar’s close friends, helped him with the stacking and laundering of criminal proceeds. Shashikant Kumar set up organisations and their bank accounts for channelling money, which then made it easier to turn government monies into cash. Additionally, he helped Sumit Kumar the former branch manager of Kotak Mahindra Bank’s Boring Road, Branch and his accomplices move money through the hawala network. On 02.08.2023, the ED detained him in Bhubaneshwar.
Further investigation by the ED showed that Mannu Singh was responsible for stealing public funds from the bank accounts of CALA cum DLAO and diverting them to several fictitious or shell companies. It has been noted that an amount totalling Rs. 3.05 crore was deducted from the accounts of CALA cum DLAO Patna and PD NHAI PIU and credited to the bank accounts handled by Mannu Singh for further layering and laundering in exchange for a commission. Incriminating paperwork was found during searches of Mannu Singh’s home, showing that he and his family members had used POC to purchase both movable and immovable property, which led to his arrest on August 18, 2023. Further research is now being conducted.
