THE ENFORCEMENT Directorate (ED) Wednesday questioned a former aide of Union minister V K Singh and recorded his statement under the Prevention of Money Laundering Act (PMLA) for allegedly defaulting on a bank loan of approximately Rs 30 crore and providing bogus documents while securing the loan.
A former defence contractor, Shambhu Prasad Singh had allegedly supplied false documents relating to contracts for supplying tents for Assam Rifles at the time of applying for the loan, a source in ED said, and confirmed that he was questioned today.
Shambhu had earlier been named political attache to V K Singh for Ghaziabad, the former Army chief’s Lok Sabha constituency.
In April last year, the ED had registered a PMLA case against Shambhu and others for alleged financial irregularities in supply of prefabricated shelters.
The ED case was based on an FIR registered by CBI in October 2014 against unknown officials of Cabinet Secretariat and Special Frontier Force (SFF) and three directors of a private firm — Sai Baba Builders and Consultants —linked to Shambhu, for allegedly repeatedly showing undue favours in supply of prefabricated shelters to SFF. It is estimated to have resulted in an undue gain of Rs 21.6 crore for suppliers .
While CBI had only named three directors of the firm — Shambu’s wife Manjari, Shyam Sunder Bhatter and J P N Singh in the FIR — the agency’s officials had said Shambhu was “very much under the scanner”.
The CBI’s allegations pertained to tweaking of tender conditions, cartelisation of firms bidding for the contracts, supplying forged documents to secure contracts and not providing bank guarantees.
The irregularities were alleged to have taken place between 2009 and 2013, with contracts worth Rs 3.96 crore secured by the firm between 2009 and 2011 and contracts worth Rs 17.6 crore from 2010 to 2013.