Enforcement Directorate files money laundering case against Shankersinh Vaghela

New Delhi: Enforcement Directorate(ED) has registered case against former Union Textile minister Shankersinh Vaghela and others for illegal transfer of NTC land causing loss of Rs 709 crore to Government of India. Vaghela is leader of opposition in Gujarat assembly and Congress MLA at present.

Central Bureau of Investigation(CBI) had already registered an FIR(complaint) in connection with National Textiles Corporation(NTC) land deal scandal against Vaghela and six others including the then Chairman-cum-Managing Director of National Textile Corporation in June last year after a year-long preliminary enquiry into the matter.

Vaghela and others are accused of sale of prime property in Mumbai allegedly at “throwaway prices” to a private company. The agencies have gone through several incriminating documents related to the land deal(s) of NTC – when the UPA was in power before proceeding against Vaghela and others.CBI had last year conducted searches at nine locations in four cities–New Delhi, Gandhinagar, Mumbai and Kolkata–including the residence of Vaghela and others.

Assets sales committee, that was chaired by Pillai, had allegedly changed its stand repeatedly in disregard of existing norms while selling NTC property to private company(s).State-owned NTC manipulated the sale of land by restricting the competitive bidding.

On 17 June last year, CBI had in its statement said: The Central Bureau of Investigation has registered a case against former Minister of Textiles (Govt. of India); then CMD, then Director (Technical ) & then Senior Manager (Legal), all three of National Textile Corporation; then Director & his Kolkatta based private firm and other unknown persons U/s 120-B, 420 of IPC & 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 for causing an alleged loss of Rs.709.27 crores(approx) to the government exchequer. It was alleged that the accused entered into a criminal conspiracy and transferred the land at Mumbai owned by National Textile Corporation to a Kolkata based private firm in a wrongful manner, for a total consideration of Rs. 29.35 crores (approx), whereas the actual value of the land was much higher. An alleged loss of Rs. 709.27 Crores(approx.) was caused to the government exchequer. Searches were conducted at the nine places including residential & official premises of accused in Gandhi Nagar, New Delhi, Mumbai & Kolkata which led to recovery of incriminating documents.

ED has registered case in same matter.

Links to related reports

This report suggests: Probing possible land scam in Mumbai, CBI had initiated a preliminary enquiry against unknown officials of the textiles ministry and National Textile Corporation (NTC) for alleged irregularities in transferring prime land belonging to the erstwhile Madhusudan Mills to a private person in year 2014. The land transfer led to a loss of Rs 1,750 crore to NTC. Kamlesh Mehta of Gowani Builders was reportedly allowed to develop 27,500 square meters of the 80,785 sqm plot belonging to the pre-independence mill. The agency had registered a preliminary enquiry on the basis of information that officials of textiles ministry and NTC conspired with the then owner of Madhusudan Mills in Worli.

This report suggests that a mega scam involved the sale of the National Textile Corporation’s land worth over Rs 400 crore at Parel in Mumbai to a private printing press company in December 2007 for just Rs 17.5 crore and that too without recovering the accumulated lease rent of Rs 90 crore becoming overdue for non payment for years.

This another report suggests that the mill land scam could be as big as worth Rs 20,000 crore.

This report provides insights into NTC land deals in Mumbai during Shankersinh Vaghela as Textile Minister.

DeshGujarat

PTI reports: ED registers money laundering case against Vaghela, others

Mumbai: The ED has booked former Union Minister Shankarsinh Vaghela and some others on charges of alleged money laundering in connection with sale of a prime National Textile Corporation (NTC) land in Mumbai which reportedly caused a loss of Rs 709 crore to the exchequer.

The CBI had filed a criminal case of corruption last year taking cognizance of which the Enforcement Directorate has now registered an offence under the provisions of Prevention of Money Laundering Act (PMLA).

Officials said the agency has worked on the case after gathering inputs from CBI and other agencies and also identified the “proceeds of crime” created by the accused.

They said Vaghela, a former Gujarat Chief Minister, and others named in the FIR will soon be summoned for questioning.

The case pertains to the sale of NTC land in upmarket Worli area of Mumbai to a private Kolkata-based firm for a meagre Rs 29.35 crore when Vaghela was Minister for Textiles.

CBI had alleged that the accused entered into a criminal conspiracy and transferred the land in a wrongful manner, for a total consideration of Rs 29.35 crore (approx), whereas its actual value was much higher, causing an alleged loss of Rs about 709.27 crore to the government exchequer.

It was alleged that during the UPA rule, Vaghela, who moved from BJP to Congress, had overruled recommendations of officials of his ministry suggesting that NTC must make a detailed evaluation of the land before the nod for transferring it to the private company was given.

CBI had registered its FIR under IPC sections related to criminal conspiracy and cheating and provisions of the Prevention of Corruption Act concerning criminal misconduct.

Besides Vaghela, currently the Leader of Opposition in the Gujarat Legislative Assembly, those named in the CBI FIR included the then Chairman-cum-Managing Director of NTC K Ramachandran Pillai, its then Director (Technical) R K Sharma, Senior Manager (Legal) M K Khare and a Kolkata-based private firm and its Director. .

The property in question is part of over 80,785 square metre land of “sick” Madhusudan Mills which was taken over by NTC under the Textile Undertakings (Taking Over of Management) Act, 1983 and the Textiles Undertakings (Nationalisation) Act, 1995.

It was alleged that in the process of settling of issues regarding taking over of assets and liabilities of the said firm, Vaghela overruled the opinion of senior officers of the Textiles Ministry seeking a comprehensive proposal from NTC, including the actual valuation of the land for settlement of the issues, the CBI FIR alleged.

Vaghela allegedly abused his official position to approve the sharing of the land in the ratio of 65:35 in favour of the Kolkata-based private company and its owner, it had claimed.

Accordingly, 35 per cent of the land was transferred to the Kolkata-based company against a consideration of Rs 29.35 crore, which was lower than the actual cost of the land, causing a loss of Rs 709.27 crore to the exchequer.

ED complaint against me BJP’s vendetta politics: Vaghela

Gandhinagar: Claiming that he has not indulged in any wrongdoing during his tenure as Union Textile Minister in UPA-1, Gujarat Congress leader Shankarsinh Vaghela today said the case registered against him by the ED is BJP’s “vendetta politics”.

Vaghela said the Enforcement Directorate (ED) lodged a case against him as he commented against Prime Minister Narendra Modi and BJP chief Amit Shah yesterday.

“This case has been lodged against me because I spoke about the political encounter of Gujarat CM Anandiben Patel.

Now, BJP wants to do my political encounter. But I am not scared of anyone, because I have not done anything wrong and every deal during my tenure as a minister was transparent,” he said.

Yesterday, while speaking to reporters over the resignation of Anandiben Patel as state CM, Vaghela had alleged that Modi and Shah did the “political encounter” of Patel by “forcing” her to resign as the state CM.

“This case by ED has been filed just within 24 hours of my encounter comment. This is nothing but a desperate attempt by the BJP, as they are losing their ground in Gujarat. Last year, the CBI had raided my house, but they went empty-handed.

This is vendetta politics by BJP. But I am not scared of such cases,” said Vaghela.

Earlier today, ED booked Vaghela and some others on charges of alleged money laundering in connection with sale of a prime National Textile Corporation (NTC) land in Mumbai, which reportedly caused a loss of Rs 709 crore to the exchequer.

The CBI had filed a criminal case of corruption last year, taking cognizance of which the ED has now registered an offence under the provisions of Prevention of Money Laundering Act (PMLA).

It was alleged that during the UPA rule, Vaghela, who moved from BJP to Congress, had overruled recommendations of officials of his ministry suggesting that NTC must make a detailed evaluation of the land before the nod for transferring it to the private company was given.