The money laundering case stems from a state police FIR filed against two Vijaya Bank officials and a man named Syed Siraj Ahmed, a first division assistant with the Waqf Board.
The Waqf Board issued two cheques of ₹4,00,45,465 to open fixed deposit accounts in the Vijaya Bank. However, instead of opening the accounts, the money was “siphoned off” by transferring to fictitious entities, the federal agency said in a statement.
It was found, the ED said, that ₹4 crore was transferred to the account of a company named Verkeys Realities Pvt. Ltd., which spent ₹1.10 crore in purchasing a Mercedes car while ₹2,72,74,444 was transferred to another account.
The agency had attached assets worth more than ₹3.82 crore in 2017 as part of this investigation and later in March that year it filed a chargesheet against six individuals and entities including Verkeys Realities.
This prosecution complaint was filed before a special Prevention of Money Laundering Act (PMLA) court located in Bengaluru.
In line with the PMLA and its “core objective” of ensuring the “restitution” of the proceeds of crime to the legitimate victims, the ED said no objections were raised by it when the additional sessions judge considered the release of the funds to the Karnataka State Waqf Board, the rightful claimant in this case.
The agency issued a banker’s cheque of ₹3,82,74,444 to the Wakf Board on July 1, which it said, was a “significant” step forward in the ED’s ongoing mission to restore the misappropriated funds to those who have been wronged.
“This release underscores the ED’s commitment to ensuring justice for victims of financial crimes. ED remains resolute in its dedication to combating money laundering and ensuring that the proceeds of crime are returned to their rightful owners,” the agency said.
