Abhishek Verma's firms under ED probe

Abhishek Verma's firms under ED probe
PRANATI MEHRA

MUMBAI, JANUARY 10: Apart from the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) is also investigating certain import-export firms floated by Abhishek Verma, son of Congress MP Veena Verma, who is now in judicial custody in Delhi.

The ED is looking into suspected money laundering by Verma and his cohorts from India through these firms, revealed sources. The modus operandi involved cyclical import/exports of computer software (and hardware) to the tune of several crores of rupees. Firms floated allegedly by Verma imported pirated software, highly overinvoiced, from Dubai and Singapore and purported to export them to Russia and the CIS countries.

In export/import business with the Russian set of companies alone, the ED has identified transfer of funds to the tune of US $ 10 million.

The investigation originated from the Directorate of Revenue Intelligence (DRI) which had identified a certain Essam Trading company in Delhi, a suspected Verma accomplice. Essam Trading, run bySandeep Puri, had invested Rs 16 crore in M/S Kudos Exports Pvt Ltd, (KEPL), key firm floated allegedly by Verma, which was used for both export and import. All export goods of KEPL seem to have been routed through Essam Trading. In fact, it was with Essam Trading's assistance that KEPL got a software technology park (STP) unit status, which entitles it to duty free import benefits.

The other firms floated by Verma in India for imports were Akanksha Exports Ltd (AEL) and A K Exports. KEPL invested about Rs 8.5 lakh with Akanksha whose director is one Yogesh Sudan.

The units suspectedly floated by Verma abroad to show exports (by those firms) to India include M/S European Capital, registered in the Isle of Wight, UK, M/S Masse in Gmbtt, Russia, M/S Gulf Waves Trading Company, and M/S Ganton Ltd, London. So far the investigations have revealed that Ganton had exported pirated software to KEPL at inflated rates. The company suspectedly does not exist and its telephone connection is also dead.

The entitieswhich were exporting the software from India to Russia, include besides KEPL, M/S Weins Ltd, and correspondingly, one M/S AS Oil Ltd allegedly floated again by Verma, in Russia, for imports from India.