ED attaches Rs 1.45-cr assets in J'khand MGNREGA scheme PMLA case

The ED has attached assets worth Rs 1.45 crore in connection with a money-laundering probe related to alleged misappropriation of MGNREGA funds in Jharkhand, the agency said on Thursday.

It said a provisional order for attachment of movable properties of former junior engineer of Khunti district "jila parishad", Ram Binod Prasad Sinha, has been issued under the Prevention of Money Laundering Act (PMLA).

The attached assets include three term deposit accounts held by the Arunachal Pradesh Mineral Development and Trading Corporation Ltd (APMDTCL) in the Itanagar branch of Vijaya Bank (now merged with the Bank of Baroda).

The Enforcement Directorate (ED) had filed a criminal case of money laundering against Sinha and others after taking cognisance of 16 FIRs and chargesheets filed by the Jharkhand Anti-Corruption Bureau (ACB).

The ACB had alleged that Sinha and others "abused" their official position and embezzled government funds to the tune of Rs 18 crore, earmarked for execution of government projects under the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme in Khunti district, by way of forgery and misappropriation.

The federal agency alleged that an amount of Rs 75 lakh was siphoned off to the bank account of APMDTCL maintained with the Itanagar branch of Vijya Bank for purchase of coal.

"This amount was transferred to the account of APMDTCL in three installments from the bank account of Sinha and his family members. APMDTCL did not disburse any coal to Sinha or his family members as they were not eligible to get any coal," the ED said.

APMDTCL also did not refund these deposits, it said.

In this manner, the proceeds of crime so acquired illegally, amounting to Rs 75 lakh, were transferred to three term deposit accounts on July 20, 2011, maintained with the Itanagar branch of the bank in the guise of purchase of coal.

This amount, along with the interest accrued, totalled to Rs 1.45 crore, the ED said.

The MGNREGA scheme, enacted in 2005, aims to provide at least 100 days of wage employment to a person in a financial year.