ED arrests Shakti Bhog Foods’ CMD on charge of money laundering

The Enforcement Directorate (ED) has arrested Kewal Krishan Kumar, the chairman-cum-managing director of Shakti Bhog Foods Limited, on money-laundering charge in reference to a financial institution fraud case involving ₹3,269.42 crore.

The company additionally performed searches at 9 places in Delhi and Haryana. “He was produced before a special court that sent him to ED custody till July 9,” mentioned an official.

The ED probe relies on a First Information Report registered by the Central Bureau of Investigation (CBI) on December 31 final yr, towards the corporate and its administrators. It is alleged that they diverted and round-tripped the mortgage funds by associated entities.

According to the CBI case, the accused individuals cheated a consortium of 10 banks to the tune of ₹3,269.42 crore. Apart from Mr. Kewal Krishan Kumar, the CBI has named two firm administrators, Siddharth Kumar and Sunanda Kumar, as accused.

The firm is into manufacture and sale of a spread of meals merchandise like wheat flour, beneath the well-known model identify Shakti Bhog, rice, biscuits and cookies in northern India. It has third-party tie-ups in different areas.

The alleged fraud got here to gentle throughout a forensic audit of the transactions from April 2013 to March 2017. It detected alleged manipulation of the account statements and inventory standing.

While the audited monetary assertion for 2015-16 talked about that stock price ₹3,035.52 crore was broken as a consequence of pest, and subsequently offered at considerably low charges, within the inventory and receivable audit performed for January-February 2016, the inventory in September 2015 was mentioned to be price ₹3,537.55 crore, as alleged.

The banks discovered that two of the 5 distributors proven to have been paid money by the corporate didn’t exist. The car numbers talked about on the products transport challans had been of two wheelers and different lessons of automobiles.