The Enforcement Directorate (ED) today filed a prosecution complaint against Mansukh Shah, former president of Sumandeep Vidyapeeth, and his brother-in-law Deepak Shah for alleged money laundering.
The complaint was filed in the special Prevention of Money Laundering Act (PMLA) court.
The agency also attached properties worth Rs 10.08 crore belonging to Mansukh Shah and his family, it said in a release here.
The ED launched a probe under PMLA against Mansukh Shah following a case registered by the Gujarat Anti-Corruption Bureau last year.
Shah and his accomplice were caught red-handed in an ACB trap while allegedly accepting a bribe of Rs 20 lakh from a student of Sumandeep Vidyapeeth, a private university located in Vadodara.
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ED's investigation found that Mansukh Shah took bribes from students for granting admissions and even for allowing students to appear for exams, said the release.
Shah was sacked by the university after he was arrested by the ACB.
He and his family members had declared capital gains of Rs 27.57 crore from investment in shares of "unviable and non-functioning listed companies", the ED said.
The bribe money, received in cash, was allegedly converted into Internet banking entries through a network of shell companies and cheque discounters, the ED release said.
The money was sent into the bank accounts of some persons who purchased shares of insignificant firms from Mansukh Shah and his family members at exorbitant premium, the ED said. The profit Shah made was shown as legitimate capital gains.
Deepak Shah allegedly took care of these money laundering transactions, the ED release said, adding that further probe was on.
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