New Delhi: The Enforcement Directorate (ED) has arrested RJD MP Amarendra Dhari Singh in connection with a money laundering case linked to an alleged fertiliser scam and payment of kickbacks to the tune of Rs 685 crore, officials said Thursday.
The 61-year-old Rajya Sabha member and businessman was arrested under sections of the Prevention of Money Laundering Act (PMLA) from his residence in Defence Colony here, the officials said.
They did not specify when he was taken into custody.
The case relates to illegal commissions worth over Rs 685 crore allegedly given to the NRI sons of IFFCO Managing Director and CEO U S Awasthi and Indian Potash Ltd (IPL) Managing Director P S Gahlaut as well as others by overseas suppliers from 2007-14. This was done through transactions facilitated by Agusta Westland case VVIP choppers deal case accused Rajiv Saxena, officials said.
Dhari, who was sent to the Rajya Sabha by the Bihar-based party in March last year, is stated to be the senior vice president of a Dubai-based firm, Jyoti Trading Corporation, involved in the case, officials said.
His role is under the ED scanner for laundering of funds and he will be further questioned after the agency seeks his custody from the court, they said.
The ED case was filed after officials studied an FIR from the Central Bureau of Investigation, which raided at least a dozen locations last month in the matter.
The CBI alleges that commissions were received in this case from suppliers of fertilisers and raw materials using a complex web of transactions.
The sham transactions were facilitated through circuitous routes in the garb of consultancy agreements to hide commissions paid to Indian Farmers Fertiliser Co-operative Limited (IFFCO) CEO Awasthi, and Indian Potash head Gahlaut, who allegedly imported fertilisers and raw materials at inflated rates, the CBI says.
The modus operandi was similar to the one used to send bribes in the AgustaWestland choppers alleged kickbacks case in which Saxena is under investigation.
“Saxena’s role in a number of such deals is being probed by the CBI and the ED,” an official source said.
IFFCO is a multi-state farmers’ cooperative while IPL is its company involved in supplying fertilisers for which the government provides subsidies to keep rates affordable for farmers.
The CBI alleges that between 2007-14, in order to claim higher subsidies, Awasthi and Gahlaut as part of a “criminal conspiracy” imported fertilisers at highly inflated rates. This included their commissions from various overseas suppliers.
The commission amounts were siphoned out of India through their sons based in the US and other accused persons, including the owners of Jyoti Trading Corporation and the Rare Earth Group, Pankaj Jain who is linked to both companies, his brother Sanjay Jain as well as Dhari and Saxena, the CBI says in the FIR.
It goes on to say that Saxena and his associates received USD 114.32 million, around Rs 685 crore at a transaction rate Rs 60 per dollar, of illegal commission in the bank accounts of his group companies and in the individual accounts of Jain, Gahlaut’s son Vivek, Awasthi’s son Amol and as well as the RJD MP.
It has also alleged that USD 80.18 million — about Rs 481 crore — was channelled through Jain’s Rare Earth Group and the remaining, USD 34.14 million — about Rs 204 crore — was received by Awasthi brothers Amol and Anupam, and Vivek Gahlaut either in the accounts of the companies owned by them or in cash.
The CBI complaint further alleges that IFFCO set up its 100 per cent subsidiary namely Kisan International Trading FZE in Jebel Ali, Free Zonal Dubai, for importing fertilisers and other raw materials from foreign companies or firms.
