ED files money laundering complaint against Reliance Infrastructure in Rs 187 crore NHAI case

New Delhi: The Enforcement Directorate (ED) has filed a prosecution complaint against Reliance Infrastructure Ltd (RIL), Sateesh Seth and others in a Rs 187-crore money laundering case linked to four National Highways Authority of India (NHAI) toll-road projects.

The complaint was filed on August 8 under the Prevention of Money Laundering Act (PMLA) before the Special Court in Dwarka, New Delhi. The agency’s case stems from an Economic Offences Wing FIR registered in Mumbai earlier this year.

ED alleges fund diversion

According to the ED, around Rs 187 crore was diverted in September and October 2010 through alleged sham, post-facto and backdated subcontracting arrangements.

The projects named by the agency are Trichy-Karur, Trichy-Dindigul, Salem-Ulundurpet and Jaipur-Reengus. These projects had received funding through NHAI grants as well as loans from banks and financial institutions.

The agency alleges that money moved from RIL, its project-specific special purpose vehicles or EPC contractors to construction contractors and then to shell entities that had no connection with road construction.

The ED further alleged that documents were created to make the transactions appear to be genuine project expenses. The funds were subsequently layered through shell companies and diamond traders. The agency has previously said the money was routed through sham subcontracting arrangements and later remitted overseas in the guise of diamond imports.

Assets worth Rs 187 crore attached

The ED provisionally attached assets worth around Rs 187 crore on August 3 in connection with the case. These include immovable properties, equity shares of Reliance Power held by RIL and land belonging to Ksheeraabd Constructions Private Limited.

Sateesh Seth was arrested on June 12 and remains in judicial custody, according to the agency. The prosecution complaint is the latest step in the investigation with the allegations now before the PMLA court. The matter remains subject to judicial proceedings and the allegations made by the ED have not been established as guilt.