ED Files Charge Sheet Against Man Named in Panama Papers for Holding Undisclosed Foreign Assets
GG News Bureau
New Delhi, 21st Oct. The Enforcement Directorate (ED) said on Saturday that it has filed a charge sheet under anti-money laundering laws against an individual whose name was mentioned in the Panama Papers leak. The charge sheet alleges that the individual, Sanjay Vijay Shinde, possessed undisclosed assets abroad.
The prosecution complaint, which also includes Shinde’s wife Aparna and a company called Venus Bay Offshore Ltd., was filed before a special Prevention of Money Laundering Act (PMLA) court in Bhopal on October 18. The court acknowledged the charge sheet on Friday, according to the federal agency.
This money laundering case against Shinde originated from an earlier charge sheet filed by the Income Tax Department under anti-black money laws. The Income Tax Department took action against Shinde as part of its investigation into the Panama Papers leak.
The Panama Papers, an investigation conducted by the International Consortium of Investigative Journalists (ICIJ) in 2016, revealed a large number of records from Panamanian legal firm Mossack Fonseca. The investigation implicated numerous world leaders and celebrities who allegedly hid money abroad through offshore companies. Some individuals were found to have legitimate overseas accounts. In total, there were 426 cases linked to India in the leaked documents.
The ED stated that Shinde had established an offshore company named Venus Bay Offshore Ltd. in the British Virgin Islands, which is considered a tax haven.
“He received a sum of Rs 21.87 crore in the bank accounts of the said company maintained at UBS-AG Bank, Singapore.”
“The accused was the sole director, shareholder and beneficial owner of the said company,” it claimed.
Since the interest in the foreign company and the assets in the form of money received in the foreign bank account were “not disclosed” by the accused in his Income Tax return, proceedings under the Black Money Act were initiated against him and a prosecution complaint was filed by the tax department.
The ED alleged that the accused brought the money to India from the BVI company through NRE/NRO accounts route and invested it into foreign currency non-resident (FCNR-FD) account.
The accused subsequently liquidated these funds and invested into various movable and immovable properties, it claimed.
“The accused had purchased properties across Bhopal, Goa, Vadodara and Mumbai using the proceeds of crime. These funds were also invested in mutual funds, shares, FDs, LIC policies and as capital investment in businesses,” it said.
The total “proceeds of crime” in this case have been calculated at Rs 34.22 crore, the ED said.
The agency had earlier conducted searches at multiple premises of Shinde and seized assets worth about Rs 30 crore.
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