NEW DELHI: The Enforcement Directorate questioned Shambhu Prasad Singh, a close aide of Union Minister and former army chief V K Singh, on Wednesday for his alleged involvement into a money laundering case of irregularities in the supply of pre-fabricated high-altitude tents to the Special Frontier Force, which operates under the Research & Analysis Wing (R&AW).
He was grilled related financial irregularities worth Rs 22 crore. “Singh was questioned and his statement was recorded under the provisions of the Prevention of Money Laundering Act in the case. We had also grilled him last week also,” said a senior ED officer.
The officer further stated that a company owned by Shambhu’s wife had allegedly availed a loan of over Rs 30 crore from Punjab National Bank and Syndicate Bank to execute the order of supply of pre-fabricated high-altitude tents and subsequently defaulted the loan amount.
The agency had filed a PMLA case against Singh’s wife company and others on the basis of a CBI probe. The officer said that they are looking at the money trail in the case an once the ‘proceeds of crime’ are identified, the tainted assets will be attached.
Singh earlier assisted Gen VK Singh in his works in the Ghaziabad Lok Sabha constituency.
In 2014, CBI had registered the case against Sai Baba Builders and Consultants and its three directors — SP Singh’s wife Manjari, Shyam Sunder Bhatter and JPN Singh.
The agency alleged that some R&AW officials had repeatedly extended favours to Singh’s firm for supply of tents during 2009 and 2013. They tweaked the contract terms to ensure that the order went to the same firm. This allegedly caused the exchequer a loss of Rs 22 crore and a consequent gain to the company.
The officer further stated that the company owned by Singh and his relatives had illegally obtained bank loans to meet the eligibility criteria of the contract.
CBI intervened in the case after they received a reference in this regard from the Prime Minister’s Office.