ED Files Prosecution Complaint Against Parabolic Drugs’ Chartered Accountant and Directors for Money Laundering

The company, its directors, and unidentified individuals are alleged to have caused a substantial wrongful loss of Rs. 1626.7 Crore to various financial institutions, including the Central Bank of India
ED - Prosecution - Parabolic Drugs - Chartered Accountant - Directors - Money Laundering - taxscan

The Directorate of Enforcement ( ED ) filed  a Prosecution Complaint ( PC ) under the Prevention of Money Laundering Act ( PMLA ), 2002 against M/s Parabolic Drugs Limited, its directors, and a Chartered Accountant before the Special Court in Chandigarh. The court took the cognizance of the PC on 3rd February 2024.

This move comes in the wake of an extensive investigation initiated by the ED following a First Information Report (FIR) lodged by the Central Bureau of Investigation ( CBI ). The FIR, citing various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988, implicated not only Parabolic Drugs Ltd. but also its promoter directors and other associated entities.

The investigation has uncovered concerning revelations regarding the activities of Parabolic Drug Ltd. and its associates between 2009 and 2014. Allegations suggested that the company, along with its directors and unidentified public servants and private individuals, caused a substantial wrongful loss amounting to Rs. 1626.7 Crore to various financial institutions, including the Central Bank of India and others.

During the investigative process, the ED conducted searches across 29 premises located in Chandigarh, Ambala, Panchkula, Sonepat, Mumbai, and Delhi. These searches, carried out under the auspices of the PMLA, resulted in the recovery of movable and immovable assets valued at approximately Rs. 114 Crores, alongside digital devices and other crucial evidence.

Consequently, the directors and the Chartered Accountant associated with Parabolic Drugs Limited were arrested under Section 19 of the PMLA, 2002. However, legal proceedings are ongoing, with the ED continuing its efforts to fully investigate and address the alleged financial misconduct.

The investigation is progressing.

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