The Enforcement Directorate (ED) of India has filed a complaint against a former Managing Director (MD) of Industrial Co-operative Bank Limited (ICBL), among others. The ED previously provisionally attached assets worth ₹305 million ($3.8m) belonging to the family members of the accused as well as companies owned by him, his family members and associates, under India’s AML/CFT law.
The ED initiated its money laundering investigation after complaints were filed alleging that the former MD of ICBL had misappropriated and siphoned off the entity’s funds. The investigation revealed transfers of large sums of money into the accounts maintained in the names of ICBL’s payment collectors and field executives – and operated by the defendant – purportedly for salary and travel allowance.
The defendant misappropriated a substantial part of these funds, generating over ₹300 million ($3.75m) in illicit proceeds. The criminal proceeds were laundered by infusion in Sashi Kumar Tea Company Pvt. Ltd. and procurement of immovable properties in the names of family members.
Source: Enforcement Directorate, India