J&K Bank fraud row: ED to grill Raj Singh Gehlot on fund diversion

NEW DELHI: Raj Singh Gehlot, Chairman of the Ambience Group of Companies who was arrested by the Enforcement Directorate (ED) last week and sent to ED custody for seven days, will be questioned about how money was routed to different companies and how he made the J&K Bank settle for Rs 128 crore in place of Rs 289.08 crore.

Gehlot was arrested by the ED on July 28 and produced before a PMLA court via video conferencing on July 30.

He has been sent to ED custody by the court for seven days.

An ED official related to probe said that during the money laundering investigation, it was found that Gehlot had entered into a criminal conspiracy to fraudulently siphon off the loan amount by diverting the funds for other purposes, such as to settle the loan of other group companies and making Fixed Deposits as well as diversion of materials to other projects of the Ambience Group.

"An amount of Rs 469 crore was found to be diverted to entities and individuals, controlled by Gehlot and for which he is the authorised signatory," he said.

The official said that during the course of investigation, Gehlot had mislead the ED and continuously tried to show that he did not make any diversion of the sanctioned loans.

"Whereas the documentary evidences collected during the search revealed that the submissions made by Gehlot were false and misleading," the official said. (IANS)

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