Case pertains to embezzlement of public deposits in Adarsh co-op. society, causing a loss of about ₹4,000 cr.
The Enforcement Directorate has filed a chargesheet against 124 individuals and entities in connection with the embezzlement of public deposits in the Adarsh Credit Cooperative Society Limited (ACCSL), causing a loss of about ₹4,000 crore.
Among those arraigned is the main accused, Mukesh Modi, besides the directors and partners in the Adarsh group of companies, Riddhi Siddhi group of companies, firms, entities and the associates of accused Virendra Modi.
The agency had earlier attached movable and immovable assets worth ₹1,489 crore in the 19 districts of Rajasthan, Delhi, Uttar Pradesh, Uttarakhand, Haryana, Gujarat and Maharashtra, linked to the accused persons. The attachment order confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act, after which the ED took possession of the properties in July-August last year.
The ED probe is based on a First Information Report registered by the Rajasthan police against Mr. Mukesh Modi, Rahul Modi and others of the Adarsh group, officials of the ACCSL and private persons for alleged cheating, criminal breach of trust, forgery of valuable security and criminal conspiracy.
According to the ED, the ACCSL lured common people into making deposits by offering high interest rates. The funds were siphoned off to Mr. Mukesh Modi’s companies, his relatives and associates in the garb of loans illegally obtained and invested in their real estate businesses.
The accused incorporated several entities, including limited liability firms, for the sole purpose of diverting funds, the agency has alleged. Mr. Mukesh Modi’s relatives, including Virendra, Bharat, Rahul, Rohit and Priyanka Modi, were involved in the fraudulent transactions, as alleged.
The main accused also infused funds in these companies as share capital from the ACCSL, while huge amounts were diverted and siphoned off through exaggerated salaries, incentives and commissions.