The Enforcement Directorate (ED) is currently investigating a substantial loan of Rs. 2,000 crore provided by the Piramal Group to Omkar Developers, who are facing accusations of money laundering. This scrutiny comes at a time when Omkar was once recognized as the foremost slum redeveloper in Mumbai. ED officials meticulously collected documentation related to the loan and, during the previous month, summoned the Chief Financial Officer (CFO) of the Piramal Group to record their statement.
Piramal Group's Cooperation with the ED
Last week, Rajesh Ladda, the CEO and CFO of Piramal Group, met with the ED and furnished them with essential documents. The Piramal Group disbursed loans exceeding Rs. 2,000 crore to Omkar in multiple installments. ED representatives have indicated that after completing their examination of these documents, they may request further clarification from Ladda or other Piramal Group executives.
Nature of the Business Deal
An industry insider revealed that Laddha was questioned about standard business loan procedures concerning the Omkar Group. They further added that Piramal Group has recovered approximately 80% of the loan amount from Omkar Developers.
A Piramal official reportedly conveyed to the ED that the group operates within the financial sector and the loans provided to Omkar were a standard commercial transaction governed by signed agreements. The official confirmed these agreements, along with all pertinent documentation, have been submitted to the ED for review.
Omkar Group's Explanation
The Omkar Group, in their communication with ED representatives, clarified that the funding from Piramal Group and other institutions secured years ago supported various projects. The ED's investigation into Omkar Group commenced when they obtained a loan of approximately Rs. 400 crore from Yes Bank. This loan, intended for constructing housing for slum residents under the Slum Rehabilitation Authority (SRA) scheme in Wadala, was allegedly diverted to additional corporate entities.
Arrests and Charges
Actor and businessman Sachin Joshi is implicated in assisting Omkar with the laundering of roughly Rs. 87 crore. It is revealed that the loan funds were not utilized for their designated objective. In January, the ED apprehended Babulal Varma and Kamal Kishore Gupta, promoters of the Omkar Group, in connection with this case and their association with JM Joshi Groups. While Kamal Kishore Gupta and Babulal Varma remain incarcerated, Joshi was granted bail for a period of two months due to health concerns.
ED's Chargesheet
The ED recently submitted a chargesheet accusing the arrested individuals and 14 associated companies of laundering Rs. 400 crore. The chargesheet reveals that Omkar Group oversees eight projects across the city, valued at Rs. 23,000 crore, and has borrowed nearly Rs. 8,000 crore from various banking and financial establishments. The ED alleges Yes Bank granted Rs. 2,755 crore to Omkar Groups at a price of Rs. 8,260 crore, with three Omkar Group projects, including the Worli project funded by Yes Bank, subsequently declared as non-performing assets (NPAs).
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