The Enforcement Directorate (ED) has recently intensified its investigation into the alleged misappropriation and illegal diversion of funds from Religare Enterprises Limited (REL). The agency conducted searches on the premises of Religare Group Chairperson Rashmi Saluja and other top officials of the group as part of a money laundering probe. This action stems from a complaint filed by Vaibhav Gawli last year, which accused former Religare directors, including the Singh brothers, and directors of Dabur Group of causing significant financial losses to the company and its shareholders.
The ED's investigation, which is still in its early stages, involves recording statements from key individuals involved in the case. Among those whose statements have been taken are three independent directors of Religare and Dabur Group Chairman Mohit Burman. The agency is working to gather information on how the stakeholders and others named in the complaint operated within Religare, aiming to uncover the details of the alleged financial irregularities.
The case against the Singh brothers, Malvinder Mohan Singh and Shivinder Mohan Singh, former promoters of REL, is particularly significant. They are accused of orchestrating a complex scheme to divert funds illegally from Religare and its subsidiaries. The FIR, which was initially filed by Gawli and later transferred to the Economic Offences Wing (EOW) of Mumbai Police, details how the Singh brothers, along with their associates, allegedly engaged in a deep criminal conspiracy to siphon off funds.
According to the FIR, Malvinder Singh allegedly induced Religare Finvest Limited (RFL) to grant unsecured loans amounting to Rs 2,397 crore to various shell companies. These loans were provided with the full knowledge and connivance of Shivinder Singh and another key figure, Sunil Godhwani. The FIR further alleges that these shell companies were never intended to repay the loans, leading to substantial financial losses for RFL.
The investigation has also implicated several other individuals and entities, including MB Fin Mart Pvt Ltd, Mohit Burman, Vivechand Burman, Monika Burman, and Puran Associate Private Limited. These individuals and companies are accused of having close family and business ties with the Singh brothers and allegedly participating in systematically diverting funds from REL.
The ED's probe into this matter is likely to expand as more evidence comes to light. The agency's focus is on unraveling the full extent of the financial mismanagement and ensuring that those responsible are held accountable. The case highlights the broader issue of corporate governance and financial integrity within large conglomerates, with the ED's actions serving as a critical step towards restoring investor confidence in the affected companies.
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