ED attaches properties worth Rs 158 crore of Rockland Hospitals Ltd in funds siphoning case
The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs 158 crore in connection with its ongoing probe in the case of Rockland Hospitals Limited under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation pertains to large-scale financial fraud involving alleged systematic siphoning of funds from Rockland Hospitals Limited by its promoters.
The anti-money laundering agency had initiated investigation on the basis of a complaint dated January 31, 2020 filed by the Serious Fraud Investigation Office (SFIO) before the special court (Companies Act), Dwarka, New Delhi, under various provisions of the Companies Act, 2013.
An ED investigation revealed that the promoters of Rockland Hospitals Limited reportedly siphoned off funds from the company by generating fake implant invoices amounting to Rs 76.03 crore using 71 companies and inflating construction costs of its hospital by Rs 82.34 crore, using its related company, Somya Constructions Private Limited.
The investigation further revealed that the accused allegedly used accommodation entry operators and shell entities to conceal the origin of the illicit funds and project them as untainted.
The total proceeds of crime generated by the promoters using the aforementioned modus operandi had been quantified at Rs 158 crore, official sources said, adding that, accordingly, the ED had provisionally attached properties equivalent to the same amount.
