Arrested Governor of Brazil Sergio Cabral floated dozens of shell companies in India
18 Aug 2020

Mumbai: The Enforcement Directorate has told the Delhi High court that Sergio Cabral, the Brazilian politician who was jailed for corruption, had created dozens of shell companies in India and received $13.24 million in those accounts. The former Rio de Janeiro governor was arrested in November 2016 by the Federal Police of Brazil while investigating alleged nexus between administrative members of state-owned oil company Petrobras, politicians and big companies. Cabral was accused of embezzling $161 million, the ED said in an affidavit filed in the high court. He had registered more than 3,000 companies in 53 countries, including over 60 in India, using a computer system called ‘Bank Drop’ to siphon off bribes received for sanctioning public contracts, the affidavit claimed.

In November 2018, the ED received a letter from the Central Authority of Brazil seeking legal assistance in the corruption and money laundering case, people in the know said. In July this year, the ED asked State Bank of India and some other banks to freeze the accounts of 67 companies on a request from the Brazilian government. These included accounts of JK Tyre, Hamilton Housewares and KP Sanghvi & Sons in a New Delhi branch of SBI. The ED filed the affidavit after Hamilton Housewares moved the high court against freezing on the account.

By Rashmi Rajput, The Economic Times, 17 August 2020

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