Panama clues hit dead end: Money routing probe against firms shut

HYDERABAD: After finding no evidence of illegal money laundering, Enforcement Directorate has closed enquiries related to Panama Papers against Hyderabad-based industrialists.

ED has probed under Foreign Exchange Management Act (FEMA) at least 11 offshore firms owned by industrialists named in

Panama

Papers in 2016, but declared there was no evidence money was routed from offshore companies to Indian companies of these businessmen.
Investigations by International Consortium of Investigative Journalists (ICIJ) into offshore companies had brought at least 415 Indians under the scanner. ED personnel of Hyderabad unit probed alleged FEMA violations and recorded statements of industrialists and also obtained bank documents.

Ajaya Kumar Malpani, shareholder in

Ayna International

, industrialist Moturi Srinivas Prasad, geologistcum-businessman Jaya Kumar Bhavanasi, businessmen

Volam Bhaskar Rao

and

Radhe Lal

, who were directors of offshore entities, were under ED scanner.

Moturi Srinivas Prasad, executive chairman of Nandan Cleantech Plc in London, had significant investors like Dubai government and

Lloyds Bank

. He was found to be a director in British Virgin Island-based companies Yes De Ventures SA, Sika Securities Limited, Bhasu Capitals Limited and Bee Pee Investments Corp, which had shareholdings in Nandan Cleantech, in 2011. Panama Papers leak of 11.5 million files from offshore law firm Mossack Fonseca had then created ripples.

One of the directors named in Panama papers Volam Bhaskar Rao told TOI, “ED recorded our statements and obtained documents of the offshore entities. There is no business activity in most firms. No money was routed. So there is no wrongdoing or violations. We hope the probe is shut.”

An industrialist linked to Emaar case Koneru Prasad’s son, Koneru Madhu, figured in Panama papers, but the probe didn’t cover him. One Motaparti Siva Rama Prasad, director of Heritage Foods who resigned after his name figured in Panama Papers case, was also not part of the probe. When contacted, an ED official said he is not aware of progress in the case.