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Monday, July 16, 2018

Money laundering case: ED arrests former director of Andhra Bank

Gargs arrest is the second in the case; Delhi-based businessman Gagan Dhawan was arrested last November.

By: Express Web Desk | New Delhi | Published: January 13, 2018 12:40:25 pm
Gujarat enforcement directorate officer’s prosecution (Representational Image)

The Enforcement Directorate (ED) arrested former Director of Andhra Bank Anup Prakash Garg on Friday in connection with a money laundering case, reported PTI. Garg, arrested under the Prevention of Money Laundering Act (PMLA), will be produced before a special court in New Delhi. He is accused in the Rs 5,000-crore bank fraud case, which involves a Gujarat-based pharmaceutical company.

The ED said it found “certain entries” in a diary belonging to the Sandesara brothers, which recorded cash payments, amounting to Rs 1.52 crore made to a “Mr Garg, Director, Andhra Bank” between 2008-09. The diary had been seized by the Income Tax Department in 2011.

The ED said, “various cash payments were made to Garg, as reflected in the said entries, on the instructions of Sandesara brothers, by withdrawing cash from the bank accounts of several benami companies of the Sandesara brothers”. It alleged Garg transferred the unaccounted money to several companies through Kolkata-based bogus shell companies.

The case is based on a CBI FIR, which also names the Sterling Biotech, its directors Chetan Jayantilal Sandesara, Dipti Chetan Sandesara, Rajbhushan Omprakash Dixit, Nitin Jayantilal Sandesara and Vilas Joshi, chartered accountant Hemant Hathi, among others.

Garg’s arrest is the second in the case; Delhi-based businessman Gagan Dhawan was arrested last November.

(With inputs from PTI)

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