ED attaches over Rs 365 crore assets in cooperative society fraud case

New Delhi, June 25 (PTI): Assets worth over Rs 365 crore have been attached by the ED under the anti-money laundering law in a probe linked to alleged embezzlement of funds by a cooperative society that duped about 20 lakh people in Rajasthan, the agency said on Friday.
The properties belong to Adarsh Group of companies/firms, LLPs (limited liability partnership), Riddhi Siddhi Group of companies/firms, AOPs (association of persons) and others.
“The attached assets are in the form of agricultural, residential and commercial land parcels located in Rajasthan, Haryana and Delhi and fixed deposits and bank balances,” the Enforcement Directorate said in a statement issued here. The total value of the attached assets, under the Prevention of Money Laundering Act (PMLA) is Rs 365.94 crore.
The case pertains to the ED taking cognisance of a Rajasthan Police special operations group (SOG) FIR filed against the Adarsh Credit Cooperative Society Limited (ACCSL) and its promoters Mukesh Modi, Rahul Modi and others. Probe found, the ED alleged, that “Mukesh Modi in collusion with his relatives Virendra Modi, Rahul Modi, Rohit Modi and associates including society officials, siphoned off depositors’ funds from ACCSL by way of inter-linked fraudulent transactions.” “Mukesh Modi, his relatives and associates incorporated several companies/firms/LLPs for sole purpose of diverting funds from ACCSL to their real estate business by way of availing fraudulent loans,” it alleged.
Mukesh Modi also infused “huge proceeds of crime in these companies as share capital from ACCSL,” the agency alleged.
“Huge amount was diverted and siphoned off by means of exaggerated salaries, incentives and commissions to its own kin and companies/firms,” it alleged.
“The actions of Mukesh Modi and others caused the society a huge loss and deprived 2 million investors of their life savings,” the agency claimed.
Assets worth a total Rs 1,489.03 crore were similarly attached by the ED in this case in October, 2019.
The agency “took possession” of these assets last year and also filed a charge sheet before a special PMLA court in March this year against 124 accused, it said.