The Enforcement Directorate (ED) has alleged that two group companies of Moser Baer were used to "route and divert funds" from a Rs 355 crore loan fraud at Central Bank of India.
The ED had arrested Ratul Puri, a former executive director of Moser Baer, in connection with its investigation into alleged laundering of the money. Puri is a nephew of Madhya Pradesh chief minister Kamal Nath.
"Accommodation entries amounting to approximately Rs 250 crore in the form of unsecured loans and share application money have been provided to M/s Aqua Electronics and Solutions Pvt Ltd and M/s Legend Power Pvt Ltd (group companies in Moser Baer under Ratul Puri). The said companies have been used to route and divert funds involved in the bank fraud," the ED told a local court in its remand paper on Friday, seeking further custodial interrogation of Puri.
The court sent him to the agency's custody for four more days. The enforcement agency said in the last four days, 28 people were summoned and statements of 20 of them were recorded.
"The statements only highlight the role and influence of Ratul Puri in Moser Baer and his involvement in the instant case," the remand paper said.
It has summoned eight more people and statements of 16 more individuals have to be recorded on date, the agency said. Puri has repeatedly denied all allegations against him.
The ED said it was in the process of receiving further evidence and documents from the CBI, banks and the resolution professional who managed the company's insolvency and bankruptcy process.
"Entries and accounts recovered by the ED from crucial persons linked to the case corroborate the modus operandi adopted by the accused and trail of money which is being deciphered," the agency has said.
While Puri has maintained that he was not actively involved in the affairs of Moser Baer since 2009-2010, this stands "contradicted by the investigation which has revealed that he was constantly managing the affairs of Moser Baer", it said.India falls further behind China as GDP slips 5% in June quarter