EOW sends notices to freeze assets of Birla Power Solutions

The Yash Birla-Group company diverted Rs 214 cr into other group companies

Don't want to miss the best from Business Standard?

The economic offences wing of the Mumbai police has sent notices to the authorities concerned for freezing of the immovable assets of Birla Power Solutions, a Yash Birla Group company, of Rs 214 crore, in connection with a fixed-deposits and inter-corporate deposits scam the company had run.

The company had made 11 transactions with the amount obtained through this scheme and diverted the money to other group companies.

The police found Rs 106 crore had been transferred to Birla Surya as equity; Rs 16 crore to Birla Shloka Edutech, with which land was purchased in Oshiwara ( a Mumbai suburb); Rs 10 crore was transferred to Zenith Birla, used as margin money for letters of credit.

Also, Rs 29.26 crore was diverted to Birla Energy Infra, Birla Cotsyn and Birla Ahuja, according to EOW officials.

The police started to look into this scheme earlier this year, when 28 investors did not receive the money they had invested. The company had promised to return the money at a high rate of interest.  

EOW then conducted raids on six properties, including Yash Birla's house and his company, and issued a lookout notice against Yash Birla. The managing director of the company, P V R Murthy, was arrested last week. Birla is expected to be quizzed in a few days.