ED slaps case on Amar Singh

Under the stringent PMLA,the ED can also attach the properties of Singh as proceeds of crime. Officials alleged that they had found money laundering worth Rs 400 crore over a period of four years. It is alleged that Singh grossly abused his official position for bestowing favours on chosen individuals and received kickbacks

The ED has also named six core companies which were used to carry out the alleged violations. These companies were further used to route money in 43 shell companies which were directly or indirectly controlled by Singh or his wife. In some of the companies,actor Amitabh Bachchan was also among the directors but he has not been named in the FIR,said the ED officials.

According to the agency,Singh merged 18 of the companies which are under investigation into his Sarvottam Caps Ltd in 2003. The remaining 25 companies were amalgamated with another company of Singh named Pankaja Art and Credit Pvt Ltd in January 2005. Such mass amalgamations is beyond comprehension as neither the companies were seen to be connected with each other in terms of their ownership and control nor did they seem to be linked in terms of their business relations, said a senior ED official.

In a report prepared by the ED which was accessed by The Sunday Express,it is stated,It was discovered while most of these companies were either incurring losses or earning negligible income,yet the shares of these companies were subscribed at preposterous premiums. A conjoint assessment of the fact of issuance of shares by some cases even up to a whopping 1500 per cent of the face value,at a time when no business activity or material income was reflected,brought forth the cunningly veiled subterfuge choreographed by Singh.