The Enforcement Directorate (ED) has reportedly begun investigation in alleged money laundering of Uttar Pradesh Power Corporation Limited (UPPCL) employees' provident fund parked with Dewan Housing Finance Limited (DHFL). The total value of the corpus parked with the scam-hit housing finance company was Rs 4,122 crore.
In its probe, the ED will look into the possibility that the money was laundered and the channels used to funnel it, Business Standard said in a report. The agency has registered a money laundering case in New Delhi, the daily further said.
The Economic Offences Wing (EOW) of Uttar Pradesh Police is already investigating alleged criminal conspiracy in the case and unauthorised investment of PF corpus DHFL. The ED recently visited Lucknow earlier this week and talked to EOW officials looking into the EPF scam case, the report said. The ED officials were informed about the case and the progress in EOW's probe so far, Business Standard quoted EOW director general Rajendra Pal Singh as saying.
Reports suggest that Rs 4,122 crore was parked with DHFL between March 2017 and December 2018. The funds were allegedly invested in connivance with officials managing the two UPPCL PF trusts via 28 brokerages or bogus firms. Funds were also parked in LIC Housing Finance and PNB Housing Finance, taking the total investment to Rs 6,600 crore.
As of now, Rs 2,267 crore is still pending with DHFL. Bombay High Court had barred the company from making fresh repayments on account of a different money laundering probe by the ED. The UP government has ordered a CBI probe in the matter, but the agency is yet to start investigation in the case.
Earlier this month, DHFL became the first financial service provider to face the bankruptcy court under the new bankruptcy rules. On November 15, the corporate affairs ministry had notified these rules to deal with resolution of financers apart from banks.