Yash Birla, close aide named in investment ‘scam’ chargesheet

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“Since Birla was the head of the company and was aware of the irregularities in his company, he has been chargesheeted. He was questioned in the past in the case but had denied the knowledge of the same,” a senior official privy to the probe detail told The Indian Express.

There was no response to an email and to phone calls to the company’s spokesperson.

According to the EOW probe, BPSL over a period of four years, between March 2009 and 2013, allegedly diverted Rs 180 crore of investor funds to six other group companies through multiple transactions involving eight bank accounts. Birla, however has contested the allegation in court.

The EOW had filed its first chargesheet in the case last year. The chargesheet was filed against the company’s CFO, PVR Murthy.

According to the FIR lodged with the EOW, in February 2012, the depositors invested in a fixed deposit scheme in which they were promised a return of 10.75 per cent after a year. The company, however, defaulted on its payments to investors. According to the EOW, the company had raised about Rs 300 crore from over 8,000 investors.

So far, the EOW has seized 10 properties of the company in connection with the case. Earlier in September, the EOW wrote to the Deputy Collector requesting notification of the properties for the purpose of attachment under the norms. This includes Birla House in Mumbai, a plot and three bungalows in Juhu besides Demat accounts of Birla and his associate companies.

Apart from the EOW, the Enforcement Directorate is also probing Birla for money laundering and has passed an adjudication order against BPSL. The ED has alleged that BPSL diverted money raised through small investors to its other group firms. The ED has also attached land belonging to two Yash Birla Group firms — Birla Surya and Birla Power Solution — in Maharashtra, Rajasthan and Andhra Pradesh under the Prevention of Money Laundering Act (PMLA).