Mumbai: In a significant move, the Enforcement Directorate (ED) conducted search operations on January 24, 2024, at three premises in Mumbai as part of its ongoing investigation into the alleged money laundering related to the siphoning off and diversion of funds from Religare Finvest Limited (RFL), a non-banking financial company (NBFC) of the Religare Group.
The premises subjected to the search operations belong to various entities, including M/s Konti Infrapower & Multiventures Pvt Ltd, M/s Edison Infrapower & Multiventures Pvt Ltd, M/s Asian Satellite Broadcast Ltd, M/s Widescreen Holdings Pvt Ltd, M/s Jayneer Capital Pvt Ltd, Sprit Infrapower & Multiventures Pvt Ltd, and the residential premises of a former senior official of the Essel Group.
The ED’s search operation has yielded results in the form of the recovery of incriminating documents and the recording of on-the-spot statements from officials of the companies involved, all carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation was initiated based on an FIR registered by the Economic Offences Wing (EOW) of Delhi Police. Religare Finvest Ltd (RFL) had alleged that four companies were involved in a criminal conspiracy, causing wrongful loss to RFL by defaulting on a loan of Rs. 150 Crore. The loan was extended in March 2014 to Essel Group’s subsidiaries: Konti Infrapower & Multiventures Pvt. Ltd, Widescreen Holdings Pvt Ltd, Edison Infrapower & Multiventures Pvt Ltd, and Asian Satellite Broadcast Pvt Ltd.
The default on the loan occurred through the execution of a fraudulent settlement agreement in January 2018. This act was allegedly carried out in collusion with the former management and officials of RFL, along with an entity named M/s Oscar Investments Ltd.
The ED’s search operation is a crucial step in unraveling the layers of financial irregularities and money laundering, shedding light on the intricate web of transactions and agreements that led to the diversion of funds from Religare Finvest Limited.
