The Enforcement Directorate on Monday stated that it has arrested Sanjay Raghunath Aggarwal in connection with an ongoing investigation under Prevention of Money Laundering Act, in the case of fraudulent GDR (Global Depository Receipt) scheme at M/s Farmax India Ltd (FIL). The case was first registered by the Telangana Police.
Mr. Aggarwal along with the promoters of the GDR issuing company and others curated a scheme of duping Indian investors by fraudulently subscribing to the GDR of Indian companies, from loan obtained from EURAM Bank by pledging the proceeds from the same GDR issue, it said.
FIL with the financial advisory services of Mr. Aggarwal through his entity La Richesse Advisors Pvt. Ltd, had raised US$ 71.91 million (approximately ₹ 318 crore in June-August 2010) in Europe by issuing GDR.
