Ratul Puri, nephew of Madhya Pradesh CM Kamal Nath, was arrested by the Enforcement Directorate (ED) Tuesday in connection with a Rs 354-crore bank fraud case.
The former executive director of Moser Baer was placed under arrest under the provisions of the Prevention of Money Laundering Act (PMLA) late Monday night and was produced before a court Tuesday, officials told PTI.
CM Kamal Nath termed the arrest as “purely mala fide action”.
“I have no connection with the business they are doing. To me, it appears to be a purely mala fide action. I have full faith that courts will take corrective stand in this,” Kamal Nath told reporters.
Hours after Puri’s arrest, the Delhi High Court dismissed his bail plea. He had apprehended arrest for allegedly receiving kickbacks in the AgustaWestland deal case through his companies. The ED also opposed the anticipatory bail plea of businessman Puri, in the court.
On Sunday, the CBI had filed an FIR in the alleged bank fraud case and raided six locations including the offices and residences of the former and present directors of the company. Puri, the company Moser Baer and four other directors of the firm including MD and Ratul’s father, Deepak Puri, Nita Puri, Sanjay Jain and Vineet Sharma are named in the FIR. They have been booked for criminal conspiracy, cheating, forgery and corruption, officials were quoted as saying by PTI.
The development comes a week after the BENAMI Prohibition Unit of the Income Tax (IT) Department provisionally attached a bungalow worth Rs 300 crore in Lutyens Delhi registered in the name of Moser Baer group company and an FDI of $40 million.
The Central Bank of India has alleged that the company has taken various types of credit facilities worth about Rs 1,962 crore from different banks over the period. The bank had extended credit facilities to the tune of over Rs 332 crore to the company till November, 2011. The bank claimed that the company and its directors forged and fabricated documents to induce Central Bank of India to release funds, an audit report cited in the complaint read.