Moser Baer Fraud: Kamal Nath’s Nephew Sent to 6-Day ED Custody
Officials said Puri was placed under arrest under the provisions of the Prevention of Money Laundering Act (PMLA).
A Special Court in Delhi sent businessman Ratul Puri, nephew of Madhya Pradesh Chief Minister Kamal Nath, to Enforcement Directorate (ED) remand for six days, in connection with the Rs 354 crore Moser Baer bank loan fraud case, ANI reported on Tuesday, 20 August.
Puri was placed under arrest under the provisions of the Prevention of Money Laundering Act (PMLA) late on Monday night, PTI reported, quoting officials.
He was scheduled to be produced before a court in Delhi on Tuesday itself, the officials had reportedly said.
Moser Baer, in a statement, called the arrest ‘unfortunate’. It said that the company has acted in accordance with all legal compliance and called the case ‘motivated’.
Kamal Nath Dubs It Action with 'Malicious Intention'
Meanwhile, Madhya Pradesh Chief Minister Kamal Nath dubbed Puri’s arrest as "action with malicious intention", even as the BJP said the Enforcement Directorate's move was based on its investigation.
Accusing the Union government of using the central agencies to target leaders like former finance minister P Chidambaram and others, Nath expressed hope that the court will take a right decision in the case.
“I have no connection with their (Puri’s) business. But, I think the arrest appears to be an action take with malicious intention,” Nath said, PTI reported.
"It is sad that all the agencies are being misused for political purpose," he told reporters on the sidelines of a programme organised in Bhopal to mark former prime minister Rajiv Gandhi's birth anniversary.
Meanwhile, the BJP reportedly said the action against Puri by the ED was based on its probe in the case.
"The ED took action on the basis of its investigation. It is clear that the people involved in plundering the country's money would not be allowed to go scot-free, irrespective of whom they are linked to," PTI quoted state BJP spokesperson Rajneesh Agrawal as saying.
CBI Booked Puri on 18 August
On 18 August, the Central Bureau of Investigation (CBI) had booked Puri, who formerly served as executive director of Moser Baer, and others in connection with the bank fraud case filed by Central Bank of India.
Besides Ratul Puri, his father and Managing Director Deepak Puri, mother and Director Nita Puri (Kamal Nath's sister), and other Directors Sanjay Jain and Vineet Sharma had also been booked, along with the company, Moser Baer India Limited (MBIL).
They were booked for alleged criminal conspiracy, cheating, forgery and corruption under sections of the Indian Penal Code and the Prevention of Corruption Act.
After registering the FIR, the agency carried out searches at six locations in the national capital including the office of Moser Baer in Okhla Industrial Area and residence of Puris in New Friends Colony.
Ratul had resigned from the post of executive director in 2012, while his parents continue to be on the board, the bank has said in its complaint to the CBI, which is now part of the FIR.
The company is involved in the manufacture of optical storage media like compact discs, DVDs, solid state storage devices. The firm started getting credit facilities from the bank from 2009, the bank said, reported PTI.
The bank has alleged that the company has taken various types of credit facilities worth about Rs 1,962 crore from different banks over the period.
The Central Bank of India had extended credit facilities to the tune of over Rs 332 crore to the company till November 2011.
Ratul Puri is already under probe scanner of the agency in the AgustaWestland VVIP choppers case.
On 19 August, the ED had told a court in Delhi that Ratul Puri was evading probe in the AgustaWestland chopper scam related money laundering case.
(With inputs from ANI and PTI)
(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)
(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)
We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.