ED registers case against Amitabh Bachchan and Amar Singh

The ghost of Amar Singh's ties with Amitabh Bachchan has come back to haunt the superstar.

The Enforcement Directorate (ED) has registered a case of money laundering against Amar Singh and his one-time friend and close family associate Amitabh Bachchan is feeling the heat. Bachchan has also been named in the Enforcement Case Information Report lodged by ED recently.

ED sources said the agency has dispatched notices to Amar Singh, his wife and Amitabh Bachchan to join investigations in this case. It is alleged that Singh by his corrupt practices in the capacity of a public servant (chairman of the UP Development Council) had amassed wealth to the tune of Rs 400 crore, amounting to loss to the exchequer.

ED's report (a copy of which is available with MAIL TODAY) says Singh as the chairman of UP Development Council during the Samajwadi Party rule in UP had abused his official position and had awarded contracts worth thousands of crores to a few industrialists, who paid kickbacks. The kickbacks were received in the form of commissions and return contracts in favour of firms owned and controlled by Singh during 2005-07.

It is alleged that financial records of EDCL, a company being run by Singh, led to the discovery of the startling scam engineered by him. The scam involved massive laundering of funds by creation of a web of shell companies with the active aid and assistance of chartered accountants and other professionals and thereupon through cross shareholdings and amalgamations invested through proceeds of crime into the firms.

There were six such core firms including Pankaja Arts & Credits and Sarvottam Caps and others, owned and controlled by Singh. Most of the firms have their registered office at Azimganj House, Camac street, Kolkata.

A major share holding of the said companies were held by his wife Pankaja Kumari Singh and close family associate Bachchan.

The said companies were not involved in any active business to earn the kind of income they had projected in the balance sheets and perusal of the profit and loss accounts of the companies revealed that though their worth was many crores, they did not have any corresponding business income and these six companies have considerable cross holdings amongst themselves. Singh, his wife and Bachchan were the ultimate beneficiaries. The firms had 23 corporate shareholders.

According to the earlier FIR, around 43 companies were formed as shell companies. The shares of these companies were subscribed at massive premiums of 600 to 1,500 per cent of the face value of the shares at that time though they had no business activity and material income.

Amalgamation of these companies also resulted in the generation of tainted money by Pankaja Arts & Credits Ltd and Sarvottam Caps Ltd.

Courtesy: Headlines Today