Anil Bastawade, an aide of former Jharkhand Chief Minister
Madhu Koda, allegedly bought an island in Thailand by siphoning off the
government money through Hawala channel during two years of Koda’s reign in the
state. Bastawade was brought back to India last month from his hideout in a
remote island off Jakarta by an Enforcement Directorate (ED) team led by Arun
Kumar, a senior officer.
Top sources in the ED said that Bastawade spilled the beans on entire money-laundering ring exposing the involvement of key associates in crime including their alleged investment through front companies abroad.
“An ED team from Ranchi also visited four islands, including Java, beginning January 24, and carried out investigation with the help of local administrations in several suspicious companies allegedly floated by Koda’s associates to launder dirty money,” sources added.
It is learnt that an ED team also visited Liberia last month
after getting some details of investment but it is being kept a close-guarded
secret in the agency. Bastawade’s interrogation got over on February 12.
However, he is likely to be confronted with Koda in the next few days.
“The agency has also received a reply of Letter Rogatory sent to Sweden, and a team of ED sleuths would be rushed there next month. Koda’s associates allegedly invested Rs 200 crore in Swedish business ventures,” sources said.
The ED has named Bastawade in its chargesheet filed last year in the case. Sources said Koda allegedly bought nine luxurious properties in Dubai through ill-gotten money wired through a real estate company owned by Bastawade. The deal valued at Rs 222 crore was paid in instalments.
“Scam was unearthed in India before full payment could be made by Koda. So far over Rs 75 crore allegedly channelised through Bastawade’s company has been discovered by the agency. The properties are located at Prime Locations SPICA, Triangle Tower and Jumeirah Village in Dubai,” sources said. According to officials two companies—Camtech Manufacturing L.L.C. and Blue Techno—were floated in 2007 in Dubai to facilitate investments in various business ventures abroad. An official in the ED office in Ranchi said the UAE authorities did not respond to the Letter Rogatory sent by the agency seeking details of money trail.
The agency, in its status report submitted in a court in Jharkhand, claimed that a total of Rs 3,536 crore was allegedly laundered by Koda and his associates and the money was invested in real estate, mining and other business ventures. The agency has already attached properties of the accused worth approximately `120 crore,” sources said.
The status report says Koda alone swindled around Rs 1,340 crore of government funds while the rest of the money was allegedly cornered by his associates.
On 10 October 2009, he was charged with laundering money. The
Enforcement Directorate uncovered over 4000 crore in illegal assets owned by
Koda. Among others, these assets were reported to include hotels and three
companies in Mumbai, property in Kolkata, a hotel in Thailand, and a coal mine
in Liberia. This alleged scam is said to be the second-largest scam uncovered
in India in 2009 and gets his name included in the list of controversial Indian
businessman like Hasan Ali Khan and Harshad Mehta.
Top sources in the ED said that Bastawade spilled the beans on entire money-laundering ring exposing the involvement of key associates in crime including their alleged investment through front companies abroad.
“An ED team from Ranchi also visited four islands, including Java, beginning January 24, and carried out investigation with the help of local administrations in several suspicious companies allegedly floated by Koda’s associates to launder dirty money,” sources added.
“The agency has also received a reply of Letter Rogatory sent to Sweden, and a team of ED sleuths would be rushed there next month. Koda’s associates allegedly invested Rs 200 crore in Swedish business ventures,” sources said.
The ED has named Bastawade in its chargesheet filed last year in the case. Sources said Koda allegedly bought nine luxurious properties in Dubai through ill-gotten money wired through a real estate company owned by Bastawade. The deal valued at Rs 222 crore was paid in instalments.
“Scam was unearthed in India before full payment could be made by Koda. So far over Rs 75 crore allegedly channelised through Bastawade’s company has been discovered by the agency. The properties are located at Prime Locations SPICA, Triangle Tower and Jumeirah Village in Dubai,” sources said. According to officials two companies—Camtech Manufacturing L.L.C. and Blue Techno—were floated in 2007 in Dubai to facilitate investments in various business ventures abroad. An official in the ED office in Ranchi said the UAE authorities did not respond to the Letter Rogatory sent by the agency seeking details of money trail.
The agency, in its status report submitted in a court in Jharkhand, claimed that a total of Rs 3,536 crore was allegedly laundered by Koda and his associates and the money was invested in real estate, mining and other business ventures. The agency has already attached properties of the accused worth approximately `120 crore,” sources said.
The status report says Koda alone swindled around Rs 1,340 crore of government funds while the rest of the money was allegedly cornered by his associates.
Madhu Koda (born January 6, 1971) is an Indian politician
who was Chief Minister of Jharkhand from 2006 to 2008. He was sworn in as the
fifth Chief Minister of Jharkhand on September 18, 2006 and remained in office
until he resigned on 23 August 2008; he was succeeded by Shibu Soren. He had
eight ministers in his cabinet. Koda is the third independent legislator to
assume the office of chief minister of an Indian state, including Bishwanath
Das in Orissa in 1971 and S. F. Khonglam in Meghalaya in 2002.Koda is presently in jail after multiple bail pleas have
been rejected. However, only a tiny fraction of the Rs 4000 crores (USD 800 mn)
graft money allegedly amassed by him has been recovered.
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