India News | ED Arrests 4 Directors of Chennai Firm in Money-laundering Case
Get latest articles and stories on India at LatestLY. The ED has arrested four directors of a Chennai-based company in a money-laundering case linked to an alleged fraud of over Rs 1,100 crore of public funds under the guise of a collective investment scheme (CIS).
New Delhi, Mar 7 (PTI) The ED has arrested four directors of a Chennai-based company in a money-laundering case linked to an alleged fraud of over Rs 1,100 crore of public funds under the guise of a collective investment scheme (CIS).
N Umashankar alias N M Umasangarr, N Arun Kumar alias N Arun, V Janarthanan and A Saravana Kumar of Disc Assets Group were taken into custody on February 5 on the basis of a non-bailable warrant issued against them by a Chennai court, the Enforcement Directorate (ED) said in a statement.
The court subsequently sent the four to judicial custody, it said.
The agency said the Supreme Court had, on February 22, dismissed a special leave petition filed by the accused against an order of the Madras High Court that dismissed their bail petition.
The ED case was filed against the accused promoters of the company and others after taking congnisance of an FIR lodged by the Economic Offences Wing (EOW) of the Tamil Nadu police.
"Disc Assets Lead India Limited and others collected money amounting to over Rs 1,100 crore from gullible public promising land or money with higher interest in return.
"The money thus collected was diverted in the guise of investment in subsidiaries, as payment of royalty to the directors and family members of the directors of the company, as dividends and as diversion to unrelated entities," the ED alleged.
The agency said a total of 1,081 properties worth Rs 207 crore have so far been attached by it in connection with the case.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)