ED attaches 31 flats, land of Congress MLA Dan Singh
The Enforcement Directorate (ED) on Thursday provisionally attached immovable assets worth Rs 44 crore, including 31 flats in Gurugram and a 2.25-acre land parcel located at Harsaru village, belonging to Congress MLA from Mahendragarh Rao Dan Singh and his son Akshat Singh, as part of the ongoing money laundering probe.
The development comes ahead of the Assembly elections slated to be held on October 5. According to ED sources, flats and land parcels in Delhi, Gurugram, Rewari and Jaipur (Rajasthan) belonging to entities linked with Suncity Projects Pvt Ltd and ILD Group have been also attached.
These entities are under probe as part of a larger case of alleged financial misconduct. The ED had initiated the investigation on the basis of the FIR registered by the CBI against Allied Strips Ltd & others.
It was found that the accused persons and entities committed fraud by siphoning off funds, criminal misappropriation, criminal breach of trust, cheating and fraud, causing loss to the tune of more than Rs 1,392.86 crore to the consortium of banks led by Canara Bank.
Rs 1,392-crore loan fraud case
- The action has been taken in a money laundering case stemming from a CBI FIR against a company named Allied Strips Limited for committing an alleged bank loan fraud of ~1,392 crore
- The attachment includes 31 flats in Coban Residency, Sector 99A of Gurugram and 2.25 acre land in Harsaru village of Gurugram in Haryana of “entities belonging” to Congress MLA Rao Dan Singh and his son Akshat Singh
Allied Strips Ltd was admitted to insolvency proceedings under the IBC in 2018 and was eventually purchased by another company. Search action under the PMLA led to the identification and seizure of cash amounting to Rs 1.42 crore, incriminating documents, undisclosed flats and lands, various lockers, trusts, and other assets from the premises of entities, including that of Akshat.
It was revealed that entities linked to Rao Dan Singh reportedly received approximately Rs 19 crore of the bank diverted funds from Allied Strips Ltd, which was used to purchase flats and land parcels.
These entities indulged in window dressing of books of accounts by squaring off the amount by assigning the same to other individuals, sources further said. Rao Dan Singh and his family members are yet to join the probe.
The modus-operandi included siphoning off funds borrowed from banks to other companies in the form of unsecured loans and advances, writing off debts of its various debtors, bogus transactions, etc. and taking cash in return for the purchase of land and investment in long-term purposes, ED sources revealed.
A law graduate and businessman, Rao Dan Singh is a four-time Congress MLA from the Mahendragarh constituency.
Belonging to the Ahir community, Rao Dan Singh, 68, has been a close aide of ex-CM Bhupinder Hooda. He has again been fielded by the Congress from Mahendragarh.
