Yadav Singh case: ED attaches assets worth around Rs 20 crore

New Delhi: The Enforcement Directorate (ED) on Monday attached assets worth around Rs 20 crore in connection with its probe into money laundering charges against former Noida chief engineer Yadav Singh.

The agency said it has issued the orders for freezing of assets under the provisions of the Prevention of Money Laundering Act (PMLA), and properties of three construction companies and a firm allegedly owned by Singh's wife have been attached.

The ED, in a statement, identified the accused firms and their role in the case.

"NKG Infrastructure Limited, M/S JSP Constructions Pvt Ltd and M/S Tirupati Construction Company had started the work even before the contracts were awarded to them."

"It clearly indicates that Yadav Singh and others in connivance with the contractors had planned to manipulate the tendering process so that the contract is finally awarded to above-mentioned companies who had already started the work," the statement said.

"These three companies submitted earnest money deposit to the Noida Authorities by using the fixed deposits of each other during the tendering process which brings out their collusion with each other," it said.

"As a quid pro quo, M/S NKG Infrastructure Ltd via Mohan Rathi (chartered accountant of Yadav Singh) infused Rs 50 lakh in the account of M/S Kusum Garments which is owned by Kusum Lata, wife of Yadav Singh. This illegal and collusive work allotment resulted in an undue advantage of Rs 19.42 crore to the above-mentioned companies," the ED statement said.

"The total value of seized assets is Rs 19.92 crore," it said.

The ED had slapped money laundering charges in two separate cases against Singh in 2015, based on a FIR by the CBI. The CBI has also filed a charge sheet in this case.

After an Allahabad High Court order, the CBI had registered two cases against Singh and his family members for alleged corruption and amassing assets disproportionate to known sources of income.

Singh's case came to the fore after the Income Tax department first carried out searches against him and others on tax evasion charges.

An attachment of assets order under PMLA is aimed to deprive the accused from taking benefits from their ill-gotten wealth and it can be challenged before the Adjudicating Authority of the said Act within 180 days by the aggrieved party.