PANJIM: The Directorate of Enforcement (ED) conducted searches on three companies of Chowgule Group and seven residential premises of Chowgule family members, including their group chartered accountant (CA) Pradip Mahatme and former managing director and chief financial officer of M/s Chowgule Steamship Limited (CSL) Mangesh Sawant, under the provisions of Foreign Exchange Management Act (FEMA) 1999.
“The searches were conducted at the premises of M/s CCPL (Chowgule & Company Private Limited), M/s CSL (Chowgule Steamship Limited) and PP Mahatme & Company and seven residential premises situated at various locations in Goa and Mumbai,” the Central agency stated in a press release on Friday.
The ED initiated investigation on the basis of credible information which revealed that the said entities had created various offshore structures in which approximately $ 228 million dollars was diverted from Indian companies over the years, by routing it through various foreign subsidiaries and step down subsidiaries based in Guernsey, UK and Marshall Islands.
During the course of search, various incriminating documents and digital devices have been found and the same were seized during the search proceedings. Investigation in the matter is underway, the ED stated.
Last month, the Economic Offences Cell (EOC) of Goa police had registered a against seven persons including former CCPl chairman Vijay Chowgule for allegedly cheating a European shipping company and its legal executive Harsh Shah for Rs 1,075 crore approximately on the pretext of managing shipping business in Goa.
On June 14, Harsh Shah residing at Chowgule and Company Pvt Ltd, Mormugao, lodged a complaint stating that at Goa to Guernsey Europe, UK, two persons including the industrialist and the financial advisor for the owner subsidiary overseas known as Rudra representative that there was a great opportunity in shipping industry.
Another accused from UK capitalised in the said business of shipping and is suspected to be mastermind of the entire operation of Rudra, which will be a profitable business in shipping industry and thereby convinced the board of directors of Rudra, wholly owned subsidiary incorporated on July 31, 2009 at Guernsey, Europe at the instance of three accused.
Thereafter the Chowgule and Company Pvt Ltd consistently infused USD 128, 691, 536 and further the two accused on false pretext of investment in shipping business advanced unsanctioned and unsecured loans to entities namely POBC (Pan Oceanic Buk Carriers, Guernsey, POBCUK (Pan Oceanic Bulk Carriers, UK, ASP Management (ASP Ship Management Pvt Ltd) and NATLATA (Natlata Holding Corporation), Panama and others owned and operated by the accused from UK and the loans provided to these entities were written off, thereby causing loss to the complainant and the CCPL.
Three other accused assisted the accused from UK in causing financial profit to the three accused and loss to Rudra Company owned by CCPL and complainant amounting to Rs 1,075 crore approximately.
The EOC registered the case under Sections 409, 420 and 477 A, read with 120 B of IPC.