'Siemens Project' fraud case: In a major crackdown, the Enforcement Directorate (ED) arrested four people in connection with its money laundering probe into the alleged diversion of Andhra Pradesh government funds for the implementation of the 'Siemens Project'. The case pertains to the diversion and misutilisation of crores of funds the state government disbursed for the implementation of "Siemens Projects" in which the government aimed at providing advanced software and technical skills to the local youth.
The arrested individuals have been identified as Soumyadri Shekhar Bose a.k.a. Suman Bose, ex-MD of Siemens Industry Software India Pvt Ltd (SISW), Vikas Vinayak Khanvelkar (MD of Designtech Systems Pvt Ltd), Mukul Chandra Agrawal, ex-Financial Advisor, and authorised signatory of Skillar Enterprises India Pvt Ltd, and Suresh Goyal, a Chartered Accountant.
According to the official, all the accused were presented at a Special PMLA Court in Visakhapatnam which remanded them to seven days' custodial remand.
The official said that the PMLA investigation was initiated on the basis of an FIR registered by Andhra Pradesh CID regarding swindling of government money to the extent of Rs 241 crore in a dubious manner.
What did ED investigation reveal?
The ED investigation revealed diversion and siphoning off government funds given to Designtech Systems Pvt Ltd through Skillar Enterprises India Pvt Ltd, and thereafter, through a web of shell companies under the guise of supply of software, hardware, services without any genuine supplies.
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The purpose for such diversion of funds was to generate cash and thereby, siphon off money from the system without utilising the same for the Siemens Projects for which funds were sanctioned by the government of Andhra Pradesh, it said.
It should be noted here that the ED has claimed to have established a money trail of diversion of around Rs 70 crore so far.
(With inputs from agencies)