New Delhi, Feb10 (UNI) Enforcement Directorate (ED) on Wednesday said that it has arrested BRD Group CMD CC William Verghese in a cheating case under Prevention of Money Laundering Act, (PMLA).
After his arrest on Monday, he was produced before the Special Court for PMLA cases at Ernakulam which granted Enforcement Custody of the arrested accused for seven days from February 9.
The BRD group is located in Kunnamkulam in Trissur district of Kerala.
The central financial probe agency move came on the basis of an FIR registered at Kunnamkulam Police Station under section 420 of IPC. The complainants alleged that they were persuaded by one W Verghese and others to invest money in various companies promoted by him in BRD Finance Ltd, BRD Securities Ltd, BRD Motors Ltd of the BRD Group promising 18 per cent of returns per annum.
“Initially money was collected as investments and later on issued share certificates but did not pay dividend as promised and issued bonus shares and cheated them in all 140 FIRs registered in the Kunnamkulam PS during 2018 and 2019 on similar allegations”, the probe agency officials said.
The ED collected documentary evidence and statement of various persons recorded under PMLA and also conducted multiple raids at the premises of BRD Securities Ltd,BRD Finance Ltd,BRD Motors in Kunnamkulam and Kokkalai and also the residence of William Verghese in Edappally in Ernakulam on January 29. and several incriminating documents and records were seized.
“It is found that William Verghese formed various entities and collected money from various persons within India and also outside India and it has been found that a number of properties were purchased by William Verghese and others in their respective names out of funds thus collected which represents the Proceeds of Crime (PoC)”,the officials in the agency said.
Verghese was the master mind in the ponzi scheme with support of other accused persons such as David Raj, one of the Directors of the company, they added.
During the investigation, it was also revealed that the a close relative of William Verghese who travelled to Sharjah and registered a company by name and style BRD International FZE, Hamriya Free Zone, Sharjah and collected money for investments from various Non-Resident Indians in UAE Dirhams promising 18 per cent return and later issued share certificates of the BRD Group of Companies in Kunnamkulam in Indian rupees.
Thus, the share certificates were also issued at the rate of Rs 120/- per share and the money was collected by cheque drawn in the name of BRD Finance Ltd. Verghese and others were collecting money for investments as aforementioned from the year 2012 onwards and the process was continuing, the ED said in a statement, adding that further investigation is under progress.
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