Published On: Thu, Jul 9th, 2020

ED attaches assets worth Rs 14.15 cr of former IAS officer in misappropriation of public fund case

New Delhi: The Enforcement Directorate under Prevention of Money Laundering Act, 2002 (PMLA) attached assets worth Rs 14.15 crore held in name of Neesa Group and owned by former IAS Sanjay Gupta in a case of misappropriation of funds meant for Metro Link Express for Gandhinagar and Ahmedabad Company Limited.

Former IAS officer Sanjay Gupta

The attached properties include a flat at Noida, Industrial Plots at Dahej SEZ, Dahej, Gujarat and Hotel Cambay at Thaltej, Ahmedabad.

“ED attaches under PMLA, flat in Noida, industrial plots and hotel in Guj totalling to Rs 14.15 cr held in name of Neesa Group owned by Sanjay Gupta, former IAS in a case of misappropriation of funds meant for Metro Link Express for Gandhinagar and Ahmedabad Co. Ltd,” the Enforcement Directorate said in a statement today.

Based on FIR and chargesheets filed by CID Crime, Gandhinagar Zone under sections of Prevention of Corruption Act, 1988, the ED initiated an investigation under PMLA against Sanjay Gupta and others for misappropriation of public funds from MEGA.

Accused Gupta was a 1985 batch IAS officer of Gujarat cadre who quit the service in the year 2002 and started his own hospitality business in the name of Neesa Group of companies. He became chairman of MEGA in April 2011 and continued till August 2013, the ED said.

Investigation under PMLA revealed that Gupta during his tenure as Chairman, MEGA, arbitrarily appointed his close associates in various official positions in MEGA who were previously working with him in Neesa Group.

According to ED, accused Gupta also floated a number of paper/dummy companies with these employee as directors and got opened bank accounts of these companies during 2012-13.

These fictitious companies further raised fabricated/bogus bills/invoices to MEGA without any supply of goods/services. These bogus bills/invoices were certified by the illegally recruited MEGA officials and payments were finally approved by him, as the administrative and financial powers were vested with him.
Accused Sanjay Gupta also arranged for the deposit of illicit cash and DD/Cheques in the account of these dummy companies, which was generated through purported cheque discounters and in the guise of consideration of allotment of contracts in MEGA.

In this manner, the proceeds of crime totalling to the tune Rs 65.73 crore were received from MEGA through bogus bills/invoices as well as illicit Cash/DD/Cheques deposits in the accounts of the dummy companies floated and controlled by Sanjay Gupta.

“Investigation under PMLA revealed that out of these proceeds of crime, an amount of Rs 14.15 crore were layered and diverted to the accounts Neesa Leisure Ltd., Neesa Infrastructure Ltd. and Euclid Constructions Ltd., all Neesa group of companies owned/controlled by Gupta, which were further utilised in business activities of the said companies and also for making repayments to their respective loan accounts and also utilised in miscellaneous payments/expenses,” the probe agency said.

Accordingly, properties worth Rs 14.15 crore being the part of proceeds have been identified and attached under PMLA. Earlier the proceeds of crime to the tune of Rs 36.12 crore have also been attached.

Further investigation, in this case, is under progress.


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