Home / Headlines / Mumbai based CA arrested for Rs 1,000 crore laundering

Mumbai based CA arrested for Rs 1,000 crore laundering

ED arrests Mumbai CA in money laundering case

ED arrests Mumbai CA in money laundering caseEnforcement directorate (ED) has arrested mumbai based chartered accountant in a Rs 1,000 crore money-laundering case against Geodesic Ltd following a two-year probe. Chartered Accountant is allegedly the key link in the case and ED officials are interrogating him to unearth the money trail.

The agency said Chartered Accountant was a director and authorised signatory to various overseas companies “located in the UAE, Hong Kong and British Virgin Islands and is being investigated for his role in aiding laundering of tainted FCCB (foreign currency convertible bonds) amounting to USD 125 million (about Rs 834.37 crore).

“He was a practicing Chartered Accountant and tax Consultant for Geodesic Ltd,” the ED said in a statement.

It said Geodesic Ltd had raised USD 125 million under FCCB for which the Citibank, London, acted as a trustee.

“The utilisation of the funds was proposed as investment in foreign subsidiaries or new overseas acquisitions. The amount of USD 125 million was first credited in the overseas account (Citibank London) of GL and thereafter was transferred directly into the account of its overseas subsidiaries like Geodesic Holdings Limited, Mauritius and Geodesic Technology Solutions Limited, Hong Kong.

 “On maturity, Geodesic Ltd had failed to adhere to the commitment given to Citibank, London for the repayment of the amount totalling to USD 157.06 million,” it said.
The PMLA investigation has also revealed that CA hatched a criminal conspiracy to cheat shareholders as well as overseas investors, by creating a web of shell companies in various countries through fictitious dealings in order to receive wrongful gains

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