Sterling Biotech: ED Attaches Sandesara Brothers’ Assets Worth over Rs9,770 Crore in Money Laundering Probe
The Enforcement Directorate (ED) on Wednesday has attached assets worth  Rs9,778 crore in connection with money laundering probe against Gujarat-based pharmaceutical company Sterling Biotech. The assets attached by the ED includes those belonging to the Sandesara brothers spread in different countries such as an oil well in Nigeria and an aeroplane and a bungalow in London.
 
In August 2017, ED had registered a money laundering case against the Sterling Biotech group, its promoters, Chetan and Nitin Sandesara and others, days after a case of alleged bank fraud of Rs5,700 crore was filed against them by the Central Bureau of Investigation (CBI).
 
Investigation by the ED revealed that the Sandesara brothers and others hatched a criminal conspiracy to cheat banks by manipulating figures in the balance sheets of their flagship companies to induce banks to sanction higher loans.
 
According to the ED officials, after obtaining loans, the accused diverted them to non-mandated purposes through a web of shell companies. Thus, the loan funds were diverted, layered and laundered by the promoters for personal purposes. The total amount of loan fraud was put at Rs8,100 crore. Between 2004 to 2012, several banks granted loans worth Rs5,700 crore to the Sandesaras. 
 
The ED said it had arrested four persons including a Delhi-based businessman-cum-middleman, Gagan Dhawan, Andhra Bank's former executive director Anup Garg, Sterling Biotech's director RB Dixit and Ranjeet Malik, an aide to Mr Dhawan.
 
Earlier, on 22 March 2019, Hitesh Narender Patel, who is brother-in-law of the Sandesara brothers was detained in Albania's capital Tirana. This was based on a red corner notice (RCN) issued by Interpol on 11th March as per request from the Indian authorities. 
 
The ED said the Sandesara brothers have incorporated more than 100 entities in various countries including the UAE, the US, the UK, British Virgin Island, Mauritius, Barbados and Nigeria.
 
Their main entities outside India include Richmond Overseas, Sunshine Trust Corp, SEEPCO BVI, SEEPCO Nigeria and Atlantic Blue Water Services.
 
In March this year, the ED had also warned that it could attach the entire amount of the one-time settlement (OTS) to be paid by the absconding directors of the scam-hit Sterling Biotech Group to the Committee of Banks. The ED informed the National Company Law Tribunal that it is also in the process of declaring the company's promoter Nitin Sandesara as an absconder under the stringent Fugitive Economic Offenders Act, 2018, (FOEA) and the agency has already attached Rs4,700 crore worth of the promoters' assets so far. 
 
Since the FEOA supersedes all other laws, the ED had said it can also attach and seize the entire amount of the OTS which the banks, led by the Andhra Bank, expect to get from the Sterling Biotech Group. 
 
The agency's response came to the 14th March notice issued by the NCLT, Mumbai members VP Singh and R Duraiswamy, after the committee of creditors sought withdrawal of the corporate insolvency resolution process (CIRP) after the Sterling Biotech Group's absconding promoters agreed to pay an OTS. 
 
The Gujarat-based pharmaceutical company owes Rs8,100 crore only to the banks and more to other financial creditors, amounting to a total of around Rs14,938 crore - bigger than the Nirav Modi scam. 
 
You may also want to read...
 
 
  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    Prakash Bhate

    1 year ago

    Absolutely. Financial terrorism is a no-risk high return business and causes more harm to the nation than that done by terrorists like Masood Azhar and Hafiz Saeed. Things will change only when the likes of Sandesaras, Mallyas, Nirav Modis, Mehul Choksis, Chitra Ramkrisnas, Chandda Kochhars and several others are perceived as terrorists and jailed for at least 20 years.

    Ramesh Bajaj

    1 year ago

    Is it so easy to become rich?

    Government to come up with an integrated RERA website
    With an aim to provide single window information on best practices and rulings in the housing sector, the government will soon come up with a platform that will integrate Real Estate Regulatory Authority (RERA) of all the states.
     
    Officials said the common platform would provide suggestions about the real estate properties and projects to invest in, real estate developers, registered property agents and much more.
     
    At present, the information pertaining to RERA of different states is available locally and not for the consumption at a national level. 
     
    "The platform would provide all the rulings related to the properties in different states categorised according to the subject and with a summary. This would help people in applying the earlier rulings in any part of the country to their particular case, if applicable. It would bring all the best practices in the home buying sector under one umbrella," Durga Shankar Mishra, Secretary, Housing and Urban Affairs ministry said.
     
    He said the recommendation to develop a common platform was made by a committee headed by Vijay S Madan, RERA chief for Delhi and Chandigarh. 
     
    "The website would enable exchange of best practices among the states. Haryana, for example, has two RERAs - one in Panchkula and another in Chandigarh. The common platform would allow exchange of rulings between the two as well as among other states," he added.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User 

    Tyre stocks rise as government imposes CVD on Chinese tyres
    Stocks of domestic tyre manufacturers rose on Tuesday after the government imposed a countervailing duty on particular type of tyres imported from China for a period of five years.
     
    The import CVD is a country-specific levy that is imposed to offset subsidies given by foreign governments and to protect domestic industry.
     
    In a notification, Ministry of Finance's Department of Revenue said it has imposed import CVD on "new or unused pneumatic radial tyres with or without tubes and or flap of rubber (including tubeless tyres), having nominal rim dia (meter) code above 16" (inches) used in buses and lorries or trucks".
     
    The import CVD which ranges from 9.12 per cent to 17.57 per cent of the CIF value is in addition to the anti-dumping duty imposed two years ago. 
     
    On Tuesday, the stock of JK Tyre and Industries rose 4.66 per cent to Rs 79.80 at the BSE. Similarly, the scrip of CEAT rose 4.30 per cent to Rs 941.60, of Apollo Tyres rose 0.50 per cent to Rs 200.35 and of MRF by 1.47 per cent to Rs 55,536.80.
     
    "Indian government has imposed a countervailing duty on Chinese radial tyres which have above 16 inches rim. These tyres are used in trucks and buses and are already subsidized by the Chinese government," said Ashwin Patil, Senior Research Analyst, LKP Securities.
     
    "In the wake of current slowdown in the auto industry, this act from GOI would bring some cheer to the tyre companies as the replacement markets would see higher inflow of the tyres coming from the listed or organised players in India."
     
    Currently, volumes of Chinese tyres have come down from 150,000 per month to 30,000 units per month. 
     
    "This would further go down in the coming months post this decision. Positive for stocks like MRF, Apollo Tyres and JK Tyres, which have major presence in the trucks and buses segments," Patil said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone