The Enforcement Directorate (ED) has taken major action against Delhi-based Rocklands Hospitals Limited and seized its assets worth Rs 158 crore. The agency said that this action has been taken under anti-money laundering laws in a case to financial fraud. According to ED, this action was taken on the basis of facts to money laundering during the investigation. However, the agency has not yet clarified which properties of the hospital have been seized.
The agency claims that the promoters, using 71 companies, prepared fake bills worth Rs 76.03 crore in the name of ‘medical implants’. According to the ED, the accused also allegedly overstated the cost of construction of the hospital by Rs 82.34 crore through their associate company ‘Soumya Constructions’. The agency alleges that crores of rupees were embezzled from the company using these methods.
resorted to shell companies to hide the source of illegal money
The Enforcement Directorate (ED) in its statement has alleged that the accused resorted to ‘accommodation entry operators’ and shell companies (fake companies) to hide the real source of funds to the alleged financial irregularities. According to the agency, an attempt was made through these means to make the money transactions appear legitimate and hide its real origin. The ED said the case is being investigated keeping in mind various aspects of money laundering and the entire chain of financial transactions is being investigated. However, Rocklands Hospital or its promoters could not be immediately contacted for comment on the allegations made in this matter.
Temporary attachment order issued under PMLA
The Enforcement Directorate (ED) said that a provisional attachment order has been issued to seize properties worth Rs 158.37 crore under the Prevention of Money Laundering Act (PMLA). According to the agency, this money laundering case is based on the investigation of the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs. The SFIO had in January 2020 filed a charge sheet against the accused promoters of Rocklands Hospital Limited on charges of alleged financial irregularities and fraud. ED said that on the basis of the same charge sheet and the facts revealed in the investigation, a case of money laundering was registered and investigation was started. Based on the evidence found during the investigation, the agency has now taken action to temporarily attach properties worth Rs 158.37 crore. The investigation of the case is still going on.
