KOCHI: The Enforcement Directorate (ED) probe into the Karuvannur Bank scam has revealed that prime accused Satheeshkumar P manipulated the balance sheet of his company to park illegal money.
This was stated in the provisional attachment order issued by Prashant Kumar, Deputy Director, ED Kochi, recently. Satheeshkumar is running a private finance firm, Devi Financiers, in Thrissur.
In the balance sheet as of March 31, 2016, the closing balance in the proprietor’s capital account stood at Rs 1.49 crore. However, in the balance sheet prepared as of March 31, 2017, the opening balance of the capital account was Rs 5.84 crore. Thus an additional Rs 4.08 crore was found. The same was not reflected in the income tax returns filed by Satheeshkumar.
During the investigation, Thrissur-based chartered accountant Sanil Kumar C V told ED that while examining the books of Devi Financiers, it was found that there was a cash deficit of Rs 4 crore and he informed the matter to Satheeshkumar. Satheeshkumar gave him a letter written by Jayarajan P, an NRI entrepreneur, stating that he has invested Rs 4 crore in cash in the business of Satheeshkumar.
However, Jayarajan denied that he had given the cash. Jayarajan told ED that Satheeshkumar asked him to give such a letter for the purpose of presenting it before the Income Tax Department. In fact he had withdrawn money from his NRE account for purchasing properties.
“The proceeds of crime of Rs 4 crore parked in the business of Devi Financiers was given the colour of legitimate money by bringing in bogus capital from Jayarajan P and a bogus balance sheet was prepared by Sanil Kumar for accommodating the entries in the book of account.
The said capital was utilised for generating further proceeds of crime by way of interest from finance business in the subsequent years and has been utilised for purchase of movable and immovable assets,” the ED report stated.
ED probe also revealed that Satheeshkumar P maintained 44 bank accounts in various banks. The cash withdrawals were utilised for the purchase of immovable properties. So far, ED has identified 15 properties belonging to Satheeshkumar and two belonging to his wife Bindhu C G