Indian Kanoon - Search engine for Indian Law

12. Petitioner - the Assistant Director of Enforcement Directorate who is invested with the responsibility and duty of investigating the 2G Spectrum case, submits that, during the course of investigation, he could come across various materials, having considerable bearing on the investigation relating to 2G Scam. The petitioner, in this contempt petition, has stated as follows:

“Facts came to the notice of the Directorate of Enforcement that one M/s Sahara India Investment Corporation, a Sahara group company, now known as M/s Sahara Prime City Ltd., during the course of investigation it is revealed that the said company had invested Rs.14.00 Crores on 28.09.2007 on which date M/s S-Tel Ltd., had applied for 16 more licences. This investment has been purportedly made for purchase of shares of M/s S-Tel. Surprisingly, this investment has been sold back on 15.01.2009 for an amount of Rs.16.80 Crores. In view of these financial details being revealed during the course of investigation and considering the fact that this entire 2G Spectrum case, there has been several ways of transactions, which was deemed appropriate to investigate this aspect of the matter also and accordingly on 02.02.2011, a summon had been issued to the Managing Director of the said Company requiring his personal appearance on 17.02.2011. The Managing Director is Mr. Subrata Roy Sahara, who chose not to appear, but, to apply for an adjournment for four weeks. Taking into consideration said request a fresh summon was issued on 30.03.2011 requiring his appearance on 08.04.2011. He is respondent No.1, above named, and he chose not to appear even on 08.04.2011 and has, thus, shown non cooperative attitude.”

15. The petitioner, referring to the Sahara Group of Companies, stated as under:

“It is further submitted that yet another reference dated 11.06.2010 as forwarded by the Head Quarter of the Office of the Directorate of Enforcement has been received from an Intelligence Unit of India, which interalia alleges that Sh. Subrata Roy, respondent No. 1 of M/S. Sahara Group of Companies alongwith others have deposited an amount of Rs.150 Crores which has been rotated through a maze of financial transactions between accounts of M/S. Sahara Corporation and M/S. Sahara India within the same branch/bank. On basis of said input, the Directorate of Enforcement had initiated discreet enquiries against M/s. Sahara Corporation and M/s. Sahara India for alleged violation of Foreign Exchange Management Act, 1999. This investigation is handled by the present applicant, who made several enquiries with number of banks by issuing directives on 23.07.2010 and 28.07.2010. This investigation involves over 100 banks and accounts and large financial transactions are being investigated. The modus operandi that was adopted is resorting to cash deposits of huge amounts on different dates in different accounts and at remote far off places of the country and withdrawal immediately by cheques which would show that there is a clear attempt prima facie to legitimize the amounts. Details from four banks have been received which show cash deposits of more than Rs.24 Crores, so far.