Probe agency files money laundering case against Sanjay Bhandari
30 Jul 2020

The Enforcement Directorate has filed a money laundering case against on run defence consultant Sanjay Bhandari to probe kickbacks worth USD 4.99 million allegedly received by him from South Korean major Samsung Engineering Co Ltd (SECL) in 2009, officials said on Monday.

Bhandari’s firm was paid by SECL, in violation of rules, to influence government officials in awarding a Rs 6,744-crore contract for setting up a Dual Feed Cracker Unit in Gujarat to OPaL, a company promoted by some oil PSUs, including ONGC, they said.

OPaL, in turn, awarded the contract of the project to a consortium of SECL and Germany’s Linde for Rs 6875.11 crore, they said.

They said the central probe agency has filed an Enforcement Case Information Report (ECIR), equivalent to a police FIR, under the Prevention of Money Laundering Act (PMLA) to probe these dealings.

The agency took cognisance of a CBI FIR filed early this month against Bhandari and others in the case, they said.

This is the second money laundering case against Bhandari after he was booked by the Enforcement Directorate (ED) for alleged possession of undisclosed assets abroad and other charges in February, 2017.

A charge sheet was filed by the ED in this case in June.

The central probe agency said Bhandari had not cooperated with it in the probe in the first case and had run away from the country and was last stated to be in the UK or a nearby country.

In the latest case, the CBI has charged Bhandari for allegedly receiving kickbacks worth USD 4.99 million from SECL in 2009 to influence government officials in awarding the Rs 6,744-crore contract to ONGC Petro Additions Ltd (OPaL), a company promoted by PSUs like ONGC, GAIL and Gujarat State Petroleum Corporation.

The allegation is that the Dual Feed Cracker Unit (DFCU), the CBI had said, which was to be set up at Dahej Petrochemical Complex in Gujarat, was awarded in favour of SECL in 2009 and advance payments were released to it from ONGC in contravention of Central Vigilance Commission (CVC) guidelines.

Read more by Press Trust of India via NDTV

RiskScreen: Eliminating Financial Crime with Smart Technology

Count this content towards your CPD minutes, by signing up to our CPD Wallet