ED attaches Rs 3-cr assets in FCCB fraud case by Mumbai firm

The Enforcement Directorate (ED) has attached assets worth over Rs 3 crore in connection with its money laundering probe of a Mumbai-based firm and its directors allegedly siphoning off funds after raising Foreign Currency Convertible Bonds (FCCB) in the UK in 2008.

The agency, in a statement, said it has issued the latest order under the Prevention of Money Laundering Act (PMLA) to freeze “three flats valued at Rs 3.18 crore owned by P Mulekar, director of Geodesic Limited.”

It said Mulekar along with other directors of the said firm had “raised $125 million funds (about Rs 500 crore) by issuing FCCB in the United Kingdom in 2008 and defaulted on repayment on maturity in January, 2013.

“During the period they (directors) indulged in siphoning off funds of the company and subsequently the proceed of crime was parked in various companies/funds abroad by acquiring shell companies in tax haven countries and investment of FCCB funds by them into other funds with the sole intention to defraud FCCB holders,” it said.

The agency registered a PMLA case in February this year based on an FIR filed by the Mumbai Police Economic Offences Wing (EOW).

ED said it's investigation till now in the case "revealed that the proceeds of crime have been parked in overseas entities and in tax heavens such as Panama, British Virgin Islands, UAE, Mauritius, Singapore, Hong Kong controlled by Mulekar and his associates.

"Therefore, in terms of provisions of PMLA the personal properties of Directors have been attached as 'Value of such Properties'," it said.

An attachment of assets under PMLA is aimed to deprive the accused from obtaining benefits of their ill-gotten wealth. The accused can appeal against this action before the Adjudicating Authority of PMLA within 180 days.