Sterling Group case: ED arrests Delhi businessman close to Congress ex-MLA for laundering Rs 5,000 crore

The diary reportedly had entries of money being paid through Dhawan on behalf of Shokeen Properties, which is connected to former Congress MLA from Matiala, Somesh Shokeen. The ED had also raided Shokeen’s premises on August 24.

Dhawan’s name had also cropped up during CBI and ED investigations into the money laundering case against controversial meat exporter Moin Qureshi. Moreover, his name was also found on the visitor’s diary at former CBI director Ranjit Sinha’s residence. Dhawan’s name had multiple entries on various dates in the register, suggesting he had met Sinha several times during his tenure as CBI director at his Janpath residence.

On October 25, CBI registered a case against Sterling Group, its directors and then Andhra Bank chief for allegedly cheating a consortium of banks of loans to the tune of Rs 5,363 crore. CBI had alleged that the company had falsified its records, including turnover, profits, income tax returns and balance sheets to avail of the maximum loan and later diverted the money for “personal purposes”.

The CBI FIR, registered under various sections of the Indian Penal Code and the Prevention of Corruption Act, names Sterling Biotech, its directors Chetan Sandesara, Dipti Sandesara, Rajbhushan Dixit, Nitin Sandesara, Vilas Joshi, chartered accountant Hemant Hathi and then director of Andhra Bank, Anup Garg, among the accused.

“In order to avail maximum loan… the directors of M/S SBL connived with the in-house CA and in active criminal conspiracy with others falsified the material records of the company inter alia related to production, turnover and investments in capital assets using various India-based entities and entities situated abroad. On the basis of these false and fabricated documents, manipulated balance sheets were prepared to induce the banks to sanction higher amounts of loans which were later diverted for personal purposes,” the FIR said.

Following the registration of the CBI case, ED has begun a money-laundering probe into the episode after registering an ECIR (equivalent to an FIR) under sections of Prevention of Money Laundering Act (PMLA). Earlier, ED had begun a probe against Dhawan based on revelations made in the diary recovered by the IT department. That probe was carried out under provisions of Foreign Exchange Management Act (FEMA).

Later, on August 30, CBI registered a case against three IRS officers for alleged corruption. The names of the IRS officers had appeared in the diary against payments by the Sterling Group.