ED Raids Essel Group Companies in Money Laundering Probe

The Enforcement Directorate (ED) conducted raids on several companies of the Essel Group in Mumbai on Thursday, January 25, as part of an ongoing money laundering investigation linked to the alleged diversion of funds worth over Rs 2,000 crore from Religare Finvest Limited (RFL).

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Incriminating Documents Recovered

The ED stated that during the raids, incriminating documents were recovered and spot statements of company officials were recorded under the provisions of the Prevention of Money Laundering Act (PMLA). The searches were conducted at three premises linked to Konti Infrapower and Multiventures Pvt Ltd, Edison Infrapower and Multiventures Pvt Ltd, Asian Satellite Broadcast Ltd, Widescreen Holdings Pvt Ltd, Jayneer Capital Pvt Ltd, Spirit Infrapower and Multiventures Pvt Ltd, as well as the residential premises of a former senior official of the Essel Group.

Essel Group's Response

An Essel Group spokesperson denied the allegations and stated that no incriminating documents were seized during the raids on its premises. The spokesperson emphasized that the company extended complete cooperation to the officials and provided all relevant documents and explanations. They also clarified that the Rs 150 crore loan in question had been repaid/settled, and there was no wrongful loss caused by the Essel Group.

Background of the Case

The money laundering case stems from an FIR registered by the Economic Offences Wing (EOW) of the Delhi Police. Religare Finvest Ltd (RFL), a non-banking financial company of the Religare Group, alleged that four Essel Group companies hatched a criminal conspiracy to cause wrongful loss to RFL by defaulting on a loan of Rs 150 crore.

Loan Default and Fraudulent Settlement

The ED alleged that the loan was defaulted by the Essel Group companies through a fraudulent settlement agreement executed in January 2018 in connivance with the erstwhile management and officials of RFL and an entity named Oscar Investments Ltd. The loan of Rs 150 crore was disbursed in March 2014 to Konti Infrapower and Multiventures Pvt. Ltd (Rs 50 crore), Widescreen Holdings Pvt Ltd (Rs 40 crore), Edison Infrapower and Multiventures Pvt Ltd (Rs 50 crore), and Asian Satellite Broadcast Pvt Ltd (Rs 10 crore).

Earlier Searches

Earlier this month, the ED conducted searches in this case at the corporate offices of RFL, M3M India Holdings, RHC Holding Pvt Ltd, Hillgrow Infrastructure Pvt Ltd, Dion Global Solutions, and Prius commercial in Delhi-NCR.

The ED's raids on Essel Group companies highlight the seriousness of the money laundering investigation linked to the alleged diversion of funds from Religare Finvest Limited. The outcome of the investigation and any subsequent legal proceedings will determine the extent of the alleged wrongdoing and the consequences for those involved.