CA linked to Lalu’s daughter arrested

NEW DELHI: The Enforcement Directorate on Tuesday arrested a chartered accountant under the tough anti-hawala law as part of a widening probe into alleged money laundering and acquisition of benami properties by RJD chief Lalu Prasad’s daughter,

Misha Bharti

, and others.

ED officials said Rajesh Agrawal, a CA who helped those with black money legitimise their cash, through shell companies, has been arrested under the Prevention of Money Laundering Act (PMLA) as part of a probe into what is suspected to be Rs 8000 money laundering racket run by two Delhi-based businessmen —Virender and Surender Jain— who were arrested earlier by the agency. Sources said documents in their possession show that

Agrawal

gave Rs 1.2 crore in cash to the Delhi brothers. The money eventually reached Misha’s company – M/s

Mishail Packers

and Printers Private Limited— through a web of transactions in which her company’s shares were acquired by the Jains at exorbitant prices.

Agarwal

’s arrest could lead to a formal probe against others involved in the money laundering scandal under the PMLA- a stringent law which provides for confiscation of properties allegedly acquired through the proceeds of crime.

It comes under growing indications that the government could be on the verge of seizing assets of politicians, businesspersons and bureaucrats, under the Benami Transactions Act. Several rounds of meetings have already taken place to chalk out the crackdown, said sources. A farm house owned by the two brothers in Bhati village has already been confiscated by the ED under PMLA .

“Agrawal has played a pivotal role in the transactions between Jain brothers and Ms Jagat Projects Limited. He is also associated with some transactions involving Ms Mishail Packers and Printers Private Limited,” the agency said in a statement. Sources said they had recovered clues about Agrawal’s link to Mishail from a computer, which was recovered during a raid by the IT department. They alleged that the chartered accountant gave Rs 1.2 crore in cash to 3 shell companies the two Delhi brothers floated and which were used to buy shares of Mishail, a company which Lalu’s daughter was involved with as a director until 2008. The probe against Misha and other members of Lalu clan for allegedly having undisclosed assets set off a bitter fight between her father and BJP, with the RJD strongman claiming that he was being targeted out of political vendetta. BJP has rejected the charge. Sushil Modi, its leader in Bihar, who has released many documents about the properties acquired by Lalu and his family, has rejected the charge and has taunted Bihar CM Nitish Kumar for not taking action against his coalition partner.

Sources said while they have no formal case against Mishail yet but after Agrawal’s arrest, it is under the scanner. The shell companies paid Rs 100 for a Mishail share worth Rs 10. Within a year, Mishail allegedly bought back the shares at Rs 10 per each through accommodation entries provided by Agarwal and Jain brothers, claimed ED sources. They further said Misha had not declared about her status as a former director of Mishail while disclosing her assets for RS polls.

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