The CBI has found the role of nine shell companies, including several defaulters, for allegedly diverting proceeds related to the National Spot Exchange Limited (NSEL) scam to other avenues.
The agency in its probe of bank frauds has found that NSEL run by FTIL rpt FTIL was allegedly using nine shell companies namely Brinda Commodity Pvt Limited, Tavishi Enterprises, Mohan India, PD Agro Processors, Dunar Foods, White Water Foods, ARK Imports, Vimaladevi Agrotech and Yathuri Associates.
While the agency has prosecuted these companies on charges of cheating and corruption, it will also share its findings with specialised agencies like SFIO, Income Tax and Enforcement Directorate among others. It is alleged that these companies were trading on the exchange platform without having actual possession of commodities, CBI sources said.
The agency has alleged that the nine shell companies, which were defaulters in the scam, allegedly helped in diverting Rs 342 crore of investors’ money. The CBI had filed charge sheet against FTIL rpt FTIL promoter Jignesh Shah and then CEO Anjani Sinha along with 20 other entities in the case.
In its probe related to bank fraud cases in last three years, the CBI has unearthed 339 shell companies which had diverted Rs 2,900 crore of bank loan funds, they said. The CBI sources further added that the shell companies were allegedly being used by the suspects to divert loan funds meant for specified purposes, creating fake invoices and round-tripping of funds to evade taxes and generate black money.
Round-tripping is sending money to tax havens abroad in the guise of payments for fake imports through shell companies and bringing back that money, showing it as “foreign investment”.