Kolkata, Jan 18 (IANS) The Enforcement Directorate (ED), Kolkata, has arrested Pratyush Kumar Sureka (40), a resident of Kolkata, under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a bank fraud case involving M/s Shree Ganesh Jewellery House (I) Ltd, the central investigation agency said in a statement on Sunday.

According to the statement, the ED initiated investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against M/s Shree Ganesh Jewellery House (I) Ltd (SGJHIL) and its promoters for defrauding a consortium of 25 banks to the tune of Rs 2,672 crore.

ED investigation revealed that around 2011-12, SGJHIL diverted loan funds sanctioned for its jewellery business into solar power projects through M/s Alex Astral Power Pvt Ltd and its related entities.

Pratyush Kumar Sureka was appointed as the Joint Managing Director of M/s Alex Astral Power Pvt Ltd vide an agreement dated April 24, 2012.

A solar power plant valued at around Rs 400 crore (comprising Rs 120 crore in equity and Rs 280 crore in bank financing secured by a corporate guarantee from SGJHIL), which was supported by a long-term power purchase agreement with Gujarat Urja Vikas Nigam Ltd, was fraudulently transferred using M/s Alex Astral Power Pvt Ltd.

The transfer was made for less than Rs 20 crore through a sham investment agreement involving entities controlled by Sureka. The related-party transaction was structured to transfer and conceal the value contained within the asset, resulting in adverse effects for creditor banks and financial institutions.

Despite Sureka having very little real net worth, the investigation showed that assets worth several hundred crores were ostensibly transferred by routing funds through circular transactions, engaging entry operators, filing bogus documents and hiding behind a complex corporate facade.

According to the ED, despite being given opportunities on several occasions, Sureka did not cooperate with the investigation and attempted to abscond abroad.

On January 5, he was intercepted at Kolkata airport on the strength of a Look Out Circular while trying to fly to Thailand.

Considering his non-cooperation, risk of evidence destruction, witness intimidation, flight risk and continuing dissipation of proceeds of crime, he was arrested on January 16.

The Special PMLA Court has further granted four days of custody.

–IANS

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