Investigation agency ED. (ANI)
Digital Desk, New Delhi. Indian investigating agency ED has arrested the famous textile industry company S. in the bank loan scam of Rs 1400 crore. An immovable property worth Rs 150 crore belonging to Kumars National Wide Limited and its former CMD Nitin Kasliwal has been attached. The property is located near the British royal family's Buckingham Palace in London.
Central investigating agency Enforcement Directorate (ED) said on Wednesday that a temporary order was issued on Tuesday to attach the assets under the Anti-Money Laundering Act (PMLA). The "high value" property, located near Buckingham Palace, is in the "beneficial ownership" of Nitin Shambhukumar Kasliwal and his family members, the ED said.
Kasliwal is accused of defrauding a consortium of Indian banks of Rs 1,400 crore. After attaching the properties located abroad, ED contacts the counterpart investigating agencies of that country so that such properties can be taken possession of under criminal provisions.
Network of companies in many tax havens
The agency alleged that Kasliwal had Kumars through National Wide Limited defrauded the consortium of banks and diverted funds out of India in the name of “foreign investments” and subsequently acquired immovable properties abroad, which were “hidden” through a complex structure of private trusts and companies in foreign jurisdictions.
ED conducted raids in this case on December 23 and seized some documents and equipment. Detailed analysis of this material shows that Nitin Kasliwal established a complex network of trusts and companies in several offshore tax havens, including the British Virgin Islands, Jersey and Switzerland.
The ED said the investigation found that Nitin Kasliwal established the Catherine Trust (formerly Surya Trust), of which he and his family members were the primary beneficiaries. The trust "controlled" a company called Katherine Property Holding Limited (CPHL), based in Jersey and the British Virgin Islands, which owned the attached real estate in London.
(With inputs from news agency PTI)