The Enforcement Directorate has approached the Reserve Bank of India and the Income-Tax Department, seeking information on the companies related to a businessman dealing in defence products, consultancy and liaison services, following the recent IT searches on their premises.
The ED has sought details from the IT Department about its findings during the searches conducted against the companies associated with Sanjay Bhandari to ascertain whether the matter also comes under its jurisdiction for further investigation.
Information on these companies has also been sought from the RBI to determine whether they had adhered to the regulation norms.
The ED is empowered to initiate investigations into alleged violation of rules under the Foreign Exchange Management Act and also under the Prevention of Money Laundering Act, if any primary agency like the IT Department registers a case for an offence covered by the statute.
Attempts to seek Mr. Bhandari’s response to the allegations did not draw any response.
Surveillance on suspectsA fortnight ago, the investigations wing of the IT Department conducted searches in connection with certain transactions under its scanner. The Department had earlier mounted surveillance on the suspects.
The IT probe is under way to establish the source of funds to the tune of about Rs.70 crore, including over Rs. 6 crore from abroad. The agency has found that between 2009 and 2014, large sums of money were purportedly transferred through about three dozen local companies in instalments.
A company was recently in the news after it entered into a joint venture with two prominent French firms, one dealing with weapons-to-aircraft interface systems, while the other one is an aircraft manufacturer.
Aircraft procurementWhile one joint venture was to facilitate research and development and manufacture of fighter aircraft components in India, the other was meant to set up a manufacturing plant in the country for production of tactical unmanned aerial vehicles.
The Directorate has also taken note of the allegation that the name of one of the group companies had figured in a deal for procurement of basic trainer aircraft.
According to records available online, Mr. Bhandari is currently a director in over a dozen companies.
