ED arrests auditor in Rs 792-cr scam
Hyderabad: The Enforcement Directorate (ED), Hyderabad, arrested chartered accountant Sharad Chandra Toshniwal under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a nearly `800 crore scam linked to Capital Protection Force Pvt. Ltd., its promoter Amardeep Kumar, and others. Toshniwal was produced before the Special PMLA Court on Wednesday and remanded to 14 days’ judicial custody.
The ED initiated its probe based on three FIRs registered by the Cyberabad economic offences wing (EOW) police, which alleged that Amardeep Kumar and Capital Protection Force Pvt. Ltd. duped investors with promises of high returns.
The company operated a so-called ‘Falcon invoice discounting scheme,’ claiming to raise funds for invoice discounting while offering attractive returns. However, the investigation revealed that no such business existed and investors were defrauded of about Rs 792 crore.
The probe further revealed that Toshniwal, the statutory auditor of Capital Protection Force Pvt. Ltd. since its incorporation, was fully aware of the fraudulent transactions. He allegedly managed the finances of several entities linked to Amardeep Kumar and his family, helped launder the proceeds of crime (POC) and acquired shares in companies in the names of his relatives and benamis.
Investigators said he also arranged cash transfers without any business purpose and was directly responsible for routing about Rs 14.81 crore, thereby playing an active role in concealing illicit funds.
Earlier, the ED had attached movable and immovable assets worth Rs 18.14 crore in the case and arrested Sandeep Kumar, brother of the main accused. Further investigation is underway.
