CBI unearths Rs 2,900 crore scam: How shell companies diverted loan funds abroad

The CBI had registered two cases against Jignesh Shah and Anjani Sinha of National Stock Exchange Limited, also known as "NSEL scam", in which funds of Rs 342 crore were allegedly swindled.

The Central Bureau of Investigation has unearthed a major scam in which 393 shell companies allegedly diverted funds to the tune of Rs 2,900 crore. The CBI learnt that shell companies were being used to divert loan funds. It was also revealed that fake invoices and round-tripping of funds were created to evade taxes and pile up black money.

The CBI unearthed this scam while probing several cases of loan frauds invilving 28 public sector banks. One private sector bank too came under the scanner of the CBI during its probe.

Round tripping

The CBI sources while explaining the modus operandi said that the accused persons were round tripping money. Round tripping means that the money is sent abroad in the guise of payments for fake imports. The money is sent through shell companies and then it is brought back by showing it as a foreign investment.
The CBI is also probing 200 cases involving funds of at least 30,000 crore. Several companies have come under the scanner and would be soon prosecuted for corruption. Many officials too have come under the scanner of the CBI.

Shell companies exposed

Apart from exposing these shell companies, the CBI has gathered enough material against several other officials part of this multi-crore scam. The CBI would also look for ways to plug the loop-holes to ensure that such a modus operandi is not used in future. The shell companies had been used by other offenders too to abet financial crimes, the CBI also said.

The companies are spread across the country as also the 'tax-haven' countries facilitating transfer of black money which makes the investigation even more difficult, they said. Some important cases which have been probed by the CBI include the one against Century Communication Group which used to run Mahua Channel. According to the figures mentioned in the agency's charge sheets and FIRs, the group allegedly committed fraud to the tune of Rs 3000 crore.

98 shell companies used:

The CBI learnt that there were 98 shell companies that were used to divert bank loans for setting up digital studios in Noida, Mumbai, Kolkata and other locations, the CBI has said. These companies were allegedly used to divert funds showing fake equity infusion to the tune of Rs 802 crore.

The Kolkata-based shell companies named in the case were allegedly controlled by one Muralidhar Lahoti. Three chartered accountants have also been charge sheeted.

Zoom Developers faces 14 cases for allegedly swindling bank funds worth Rs 2600 crore involving a consortium of 26 banks. It allegedly collateralised foreign bank guarantees issued by Indian banks in favour of foreign aggregators.

The CBI had registered two cases against Jignesh Shah and Anjani Sinha of National Stock Exchange Limited, also known as "NSEL scam", in which funds of Rs 342 crore were allegedly swindled.

In many cases, the CBI found that companies have peons, drivers, sanitation workers, personal staff, cooks etc as the directors of the shell companies created by the masterminds who divert funds using them, the sources said.

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