I-PAC raised ‘bogus invoices’ without rendering services, ED tells Delhi court

E-PaperSubscribeSubscribeEnjoy unlimited accessSubscribe Now! Get features like The Enforcement Directorate (ED) accused I-PAC of raising “bogus invoices” to justify receiving funds from multiple third-party entities “without rendering any actual consultancy or professional services,” as the federal agency sought the custody of Vinesh Chandel, a director of the political consultancy firm. The ED said substantial amounts were credited to I-PAC without any genuine business purpose.Chandel was produced before Delhi’s Patiala House court late on Monday night and remanded in 10-day ED custody hours after he was arrested in connection with a money laundering probe linked to alleged illegal mining and transportation of coal in West Bengal. The hearing continued until the early hours of Tuesday. ED’s special public prosecutor, Simon Benjamin, told the court of Shefali Barnala Tandon that transactions were deliberately structured to provide a colour of legitimacy to “otherwise illicit funds” and were used for layering and integration of proceeds of crime into the formal financial system. “Substantial amounts were credited to the accounts of I-PAC from various entities without any genuine business purpose, thereby establishing that the company acted as a conduit for routing funds,” the court’s remand order quoted Benjamin as saying. Benjamin argued that the evidence on record establishes that the proceeds of crime were “systematically layered” and routed through banking channels. Benjamin said the unaccounted cash component was utilised through informal channels including hawala transactions. It cited statements recorded during investigation and said they showed the involvement of people associated with I-PAC in facilitating hawala arrangements. The ED argued this indicated deliberate use of non-banking channels for movement of funds. “This dual mechanism of routing funds demonstrates a conscious effort to conceal the origin and project the proceeds of crime as legitimate business income.” He said I-PAC, through its directors including Chandel, Rishi Raj Singh, engaged in generation, concealment and laundering of proceeds of crime through a structured mechanism of financial transactions. “The company, under his direction, adopted a modus operandi of splitting receipts between accounted (banking channels) and unaccounted (cash/non-banking channels) modes, thereby deliberately suppressing the true nature and extent of its financial activities.” Benjamin cited documentary evidence, including seized records and statements, and said they clearly demonstrates that such bifurcation was systematic and intentional. The ED accused Chandel of making false and misleading statements by denying the existence of cash transactions and misrepresenting the nature of the company’s activities. Benjamin argued Chandel and other directors, managed the deletion of emails and sensitive financial data from the accounts of key employees”. The agency also called Chandel a flight risk. In January, the ED accused West Bengal chief minister Mamata Banerjee of obstructing its searches and removing evidence as the ED conducted raids at the I-PAC office and the premises of its director, Pratik Jain. Banerjee alleged that the ED attempted to seize election-strategy-related documents from I-PAC premises ahead of the West Bengal assembly elections. Banerjee said that the ED targeted I-PAC, which works with the Trinamool Congress, to steal the party’s data. I-PAC in January said its role was limited to transparent, professional political consulting, free of influence from political ideology. “We believe this [the raids] raises serious concerns and sets an unsettling precedent. Regardless, we have extended full cooperation... engaging with the process in complete accordance and respect for the law.”