New Delhi, Jan 13: Enforcement Directorate (ED) arrested a former director of Andhra Bank, Anup Prakash Garg, in connection with Gujarat’s Sandesara Group Scam.
Garg has been held under the Prevention of Money Laundering Act (PMLA) after a day-long questioning on Friday.
Both the ED and the Central Bureau of Investigation (CBI) had named Garg in their criminal cases as an accused.
The ED initiated a money laundering probe in the case taking cognisance of CBI FIR in the matter.
During probe officials found “certain entries” in a diary seized by the Income Tax Department in 2011 showed various cash payments amounting to Rs 1.52 crore made to one “Mr. Garg, Director, Andhra Bank” between 2008- 2009 by the Sandesara brothers, news agency IANS quoted citing ED was saying.
“Various cash payments were made to Garg, as reflected in the said entries, on the instructions of Sandesara brothers, by withdrawing cash from the bank accounts of several benami companies of the Sandesara brothers,” it assured.
The financial investigation agency alleged Garg of infusing several crores of rupees of his unaccounted cash in various companies through many Kolkata-based bogus shell companies with the help of cash or cheque entry operators in Kolkata to launder the proceeds of crime obtained by him from the Sandesaras.
In November last year, the ED nabbed a Delhi-based businessman Gagan Dhawan in connection with the case.
The Central Bureau of Investigation had booked Sterling Biotech, its directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi, chartered accountant Hemant Hathi, Garg and some unidentified persons over the alleged bank fraud case.
Sterling Biotech had taken loans of more than Rs 5,000 crore from a consortium of banks led by Andhra Bank which had turned into non-performing assets. A total pending dues of the group companies were Rs 5,383 crore as on December 31, 2016, alleged the CBI FIR.