The Enforcement Directorate, last week arrested a Chartered Accountant on money laundering charges under the Prevention of Money Laundering Act for illegally routing an estimated Rs. 834 crore.
Dinesh Jajodia, a Mumbai-based Chartered Accountant was arrested by the central probe agency’s office in Mumbai, sources said.
The agency said Jajodia 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 agency also said its probe revealed that Jajodia “hatched a criminal conspiracy to defraud the shareholders as well as FCCB holders (overseas investors) by creating a web of shell companies in various countries through fictitious dealings in order to receive wrongful gains.”
