ED arrests 2 under PMLA in alleged Shakti Bhog cheating case

 Mukesh Ranjan

Tribune News Service

New Delhi, September 24

The Enforcement Directorate (ED) on Friday said it has arrested Ashok Kumar Goel and Devki Nandan Garg under the provisions of Prevention of Money Laundering Act (PMLA) in a cheating case relating to M/s Shakti Bhog Foods Limited and others.

Officials in the ED said the two of them were arrested from the National Capital on September 20 and 21 following searches, which were carried out on September 17 on 13 premises located in Delhi and Uttar Pradesh.

During these searches, various incriminating documents and digital evidences have been traced and seized, they said.

After the arrests, a special PMLA court granted custody of both the accused to the ED till today, which has further been extended for five more days.

The ED said the court noted that remand of both the accused was necessary and justified for fair and complete investigation of the matter.

The ED had initiated money laundering investigation on the basis of FIR registered by the CBI against M/s Shakti Bhog Foods Limited and others for criminal conspiracy, cheating and criminal misconduct resulting in bank fraud of Rs 3269.42 crore, the officials said.

“Shakti Bhog Foods Limited had procured fake sale-purchase invoices from the dummy entities under the command and control of Ashok Kumar Goel and Devki Nandan Garg without having any genuine business transactions. They acquired the proceeds of crime and assisted Shakti Bhog Foods Limited in generation, acquisition, layering and siphoning off its loans funds,” the ED has alleged in an official statement.