ED arrested Sanjay Jain on 6 Oct for his role in channelizing the proceeds of crime from foreign shores to India. In its ongoing investigations against US Awasthi & others, the Directorate of Enforcement (ED) arrested Sanjay Jain on 06.10.2022 for his role in channelizing the proceeds of crime from foreign shores to India. He was produced before the Hon’ble Special Court which remanded him to ED Custody till 11.10.2022.
Who filed the complaint?
ED had initiated a money laundering investigation on the basis of the registration of a case by CBI dated 17.05.2021, against U.S Awasthi MD & CEO, Indian Farmers Fertilizer Cooperative Ltd. (IFFCO), Pravinder Singh Gahlaut, MD, Indian Potash Ltd. (IPL), etc for criminal conspiracy, cheating, and criminal misconduct.
The allegations include the receipt of illegal commission by the accused from overseas suppliers through a complex web of fake commercial transactions through multiple entities registered outside India. Most of these entities were controlled by the accused persons.
They camouflaged the fraudulent transactions as genuine.
It is found that U. S. Awasthi & Parvinder Singh Gahlaut have considerable influence in the Fertilizer industry. As Managing Director of IFFCO & Director of IPL, they were stalwarts in the fertilizer industry. Payment of commission to them through their sons bleed the coffers of IFFCO & IPL. It is a fraud on the shareholders of IFFCO & IPL, which consists of many State Marketing Federations. Stakes in these marketing federations are held by various State Governments.
Role of Sanjay Jain in IFFCO
During the investigation, ED found that an amount of Rs. 37.12 Crore plus USD 6.18 Million has been received by Sanjay Jain in India through illicit means. Earlier, Enforcement Directorate had arrested Sanjay Jain’s business partners A D Singh, and Alok Kumar Agarwal with whom he had business relations. Sanjay Singh is found to be associated with at least 45 companies.
A D Singh had also received Rs. 27.79 Crore from Dubai through illicit means. Both Sanjay Jain and A. D. Singh have used the vehicle provided by Alok Kumar Agarwal to receive the proceeds of crime in India.
ED had also filed a Prosecution Complaint before the Hon’ble Special Court on 30.07.2021 against 6 accused and Hon’ble Court had taken cognizance of the offense.
Further investigation is under progress.
