ED chargesheets UP-based fraudster in PMLA case

The Enforcement Directorate (ED) on Wednesday said that a charge sheet has been filed before the Patiala House Court here against an Uttar Pradesh-based fraudster in a cheating and forgery case.

The ED initiated money laundering investigation against Sanjay Prakash Rai on the basis of an FIR registered by P.S. Vibhuti Khand, Lucknow East Commissionerate, in the case.

The agency's investigation revealed that Rai duped the general public of a huge amount of money by portraying himself to be close to senior politicians and bureaucrats.

During the course of investigations, the ED conducted search operations at 42 locations in New Delhi, Gurugram, Faridabad, Noida, Ghazipur, Pune and Gandhidham.

Rai was arrested and was in ED custody from June 3 to 16.

The ED investigation revealed that Rai duped businessman Gaurav Dalmia and his family to the tune of Rs 12 crore .

Out of the Rs 12 crore, Rs 6 crore were received in the bank account of Youth Rural Entrepreneur Foundation (YREF) in January 2023 from Dalmia Family Office Trust, wherein Gaurav Dalmia is trustee.

Rai incorporated YREF under Companies Act as a not for profit company on February 16, 2019.

"The registered address of YREF is village Karaila, Post Saheri, Ghazipur, Uttar Pradesh. However, the actual operational activities of YREF are being done from House No 1, Delhi Riding Club, Safdarjung Road, New Delhi which is also the residential address of Sanjay Prakash Rai. Although Sanjay Prakash Rai does not hold any official position in YREF, he controls the day-to-day affairs of the company and is the ultimate beneficiary. The said payment of Rs 6 Crore were received by Rai under the guise of donation in YREF from Dalmia Family Office Trust," the ED said.

The agency added that Rai had forged documents in respect of payments of Rs 6 crore received from Dalmia Family Office Trust to conceal the true nature of transactions.

In addition, a sum of Rs. 6 Crore were received in cash by Rai from Gaurav Dalmia which were subsequently layered and placed in the bank accounts of his sons Yash and Sujal in the form of accommodation entries from certain Delhi based jewelers in the garb of sale of old jewellery.

ED investigation has further revealed that Sanjay Prakash Rai has cheated several other persons and duped them to the tune of Rs 2.51 crore.

Sanjay Prakash Rai has cheated Mohit Singh, Managing Director of Shipra Estate Ltd, by showing his contacts with senior politicians and bureaucrats and duped him to the tune of Rs 1 crore by making false promises.

The said payment of Rs 1 crore were received in the bank account of Youth Rural Entrepreneur Foundation under the garb of donation.

Sanjay Prakash Rai has also duped Naveen Kumar Malhotra, Director of Bindu Fashion Pvt Ltd to the tune of Rs 1 crore and Sunil Chand Goyal, Director of Metadesign Solution Pvt Ltd to the tune of Rs 51.5 lakhs by making false promises and impressing them by portraying himself as an influencer, a social worker and associated with the PMO.

Earlier, the ED had passed freezing orders and Provisional Attachment Order for attachment and freezing of 19 movable properties worth Rs 14.5 crore, including 18 bank accounts with a balance of Rs 13,96,43,189 and one movable property in the form of Mercedes AMG car worth Rs 58,05,000 in the name of accused, his family members and entities where proceeds of crime were placed.

The total seizure and attachment in the case stands at Rs14.54 crore.