The case pertains to alleged financial irregularities in supply of high-altitude tents worth Rs 22 crore to intelligence agency Research and Analysis Wing during 2009-13.
The agency said it has issued a provisional order against Shambhu Prasad Singh and others “under the Prevention of Money Laundering Act in a case of bank fraud.”
Two factories, a commercial property in Noida, a residential property in Lucknow and agricultural land in Ballia have been attached, it said.
“Ms Dynamic Shells (India) Private Limited, a company owned by Singh, ran a network of shell companies to divert funds availed from financial institutions. The company siphoned off bank loan amount received from PNB by routing into the bank accounts of various firms and companies... which were formed or incorporated in the names his employees,” the ED said in a statement.
It added that the “bank accounts of the said companies were opened in various banks in Delhi, particularly in Syndicate Bank, Nehru Place branch.”
These companies were shown as the vendors of Ms Dynamic Shell Pvt Ltd and a large number of payments were made in favour of these firms from the loan accounts of Ms DSIPL which was further either withdrawn or diverted to the personal accounts of Singh and his wife, it said.
Calling these 13 firms “shell companies”, the ED said they were “managed or owned by him (Singh), his family members and his employees.”
“Therefore, funds so received in the loan account of the said company were diverted in contravention of loan terms agreed with the bank and used by Singh for his own benefit,” it said.
The ED, a financial crime investigation agency, had booked a PMLA complaint in this case based on a Central Bureau of Investigation FIR.
“The investigation revealed that the loan funds were taken on the basis of forged documents of supply orders to the paramilitary forces and armed forces which were misappropriated and diverted by Singh for his personal use instead of utilising it for his business activities as provided under terms of loan,” it said.
The case is related to alleged corruption in the supply of tents required by SFF, a covert unit operating under the external intelligence agency RAW, during 2009-13.
SFF was set up after the 1962 India-China war to carry out specialised operations.
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