Court's decision on Videocon Mozambique oil deal. (symbolic picture)
Jagran correspondent, New Delhi. The court of the special judge at Rouse Avenue has taken cognizance of the prosecution complaint filed by the Enforcement Directorate (ED) in a money laundering case related to the Videocon Mozambique oil deal. The court has issued notices to a total of 13 accused, including industrialist Venugopal Dhoot and 12 other individuals and institutions. The complaint was filed in December 2024 under the Prevention of Money Laundering Act (PMLA).
The ED investigation is based on the CBI FIR filed in June 2020. According to the agency, the foreign currency loan facilities availed by Videocon Group for development and refinancing of overseas oil and gas assets were systematically diverted from their intended purpose and diverted for other purposes.
What is the whole matter?
According to the ED, the Standby Letter of Credit (SBLC) for these funds was sanctioned by a consortium of Indian banks, led by State Bank of India (SBI). It is alleged that the funds were misappropriated under the control and direction of the group's promoters, with the active role of foreign entities and middlemen.
Investigation revealed that the loan amount was first routed through Videokal Hydrocarbon Holdings Limited (VHHL) and its foreign oil-gas subsidiaries. After this, this money was transferred layer by layer to the network of foreign group companies which had no connection with the oil-gas business.
The ED claims the money was brought back to India through circular transactions, export advance adjustment, inter-company loans and investments and used for non-oil business expenses, investments, and creation of personal and corporate assets.
Accounts of group companies were declared NPA.
According to the agency, out of the total credit facility of about $4.54 billion, about $2.02 billion was diverted for non-specified purposes. These amounts were later shown as legitimate income in the accounts of Videocon Industries Limited and its Indian group companies in the form of export advances, loan repayments or equity infusion.
In 2018, the accounts of Videocon Industries Limited and its group companies were declared NPA. Banks have filed claims totaling Rs 61,773.02 crore, of which Rs 23,647.12 crore are NPAs linked to the SBLC facility alone.
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