ED Attaches Rs 158.37 Crore in Rockland Hospitals Money Laundering Case
ED attaches assets worth Rs 158.37 crore in a money laundering probe involving Rockland Hospitals, uncovering fraudulent fund siphoning.
The Enforcement Directorate (ED) has taken significant action in its investigation into Rockland Hospitals Limited, provisionally attaching immovable assets valued at approximately Rs 158.37 crore. This move is part of an ongoing probe under the Prevention of Money Laundering Act (PMLA), 2002, aimed at uncovering financial irregularities involving the hospital's promoters.
Fraudulent Activities Uncovered
The investigation, initiated following a complaint by the Serious Fraud Investigation Office (SFIO) on January 31, 2020, has revealed a complex scheme allegedly orchestrated by the hospital's promoters. According to the ED, funds were siphoned off through fake implant invoices amounting to Rs 76.03 crore and inflated construction costs of Rs 82.34 crore. These funds were then routed through shell companies and later reintroduced into the company as share capital.
Scope of the Investigation
The ED's actions are part of a broader investigation that highlights large-scale financial fraud within Rockland Hospitals. The total estimated proceeds of crime generated through these fraudulent activities have been quantified at Rs 158.37 crore. These findings are based on the modus operandi involving fake invoices and shell companies, as detailed in the press release by the ED.
In a separate but related operation, the ED also conducted searches at multiple locations linked to ROF Group chairman Mangal Sain Mittal, Anil Sharma, and their associates. These searches, carried out on July 9, targeted eight residential and business premises in connection with an alleged Rs 90.5-crore fraud involving the Shanti Niketan Co-operative Group Housing Society Ltd (CGHS).
Seizures and Further Actions
During these searches, the ED seized digital devices, incriminating documents, property papers, and financial records. Assets valued at approximately Rs 6.63 crore were confiscated, including Rs 55 lakh in cash, gold bullion worth Rs 1.85 crore, gold jewelry valued at Rs 1.95 crore, and around 100 kg of silver assessed at Rs 2.28 crore. Several bank accounts associated with the accused were also frozen as part of the investigation.
The ED's investigations continue as they aim to dismantle the financial networks facilitating such fraudulent activities. These actions underscore the agency's commitment to enforcing the PMLA and ensuring accountability in financial operations.