NEW DELHI: The Enforcement Directorate (ED) probing into money laundering case of Sterling Biotech that also involves bribing of tax officials and tax evasion, has sought help from its counterparts in Nigerian and United States to further investigate undisclosed offshore entities.
Sources in the investigating agency said the company had introduced Rs 3,000 crore in India during 2003-2007 through their undisclosed offshore entities and subsequently Rs 2, 430 crore has been invested in Nigerian operation.
An ED document reviewed by the New Indian Express said: “The promoter group funding and investment in Nigerian operations have been routed through the undisclosed offshore investment companies, in particular, Crown House International Corp British Virgin Islands, European Financial Development Corporation and Global Finance Ventures Ltd.”
“We have sought more information about these companies and investments made in two oil blocks namely OPL 277 and OPL 280. In the Nigeria operation several suspicious companies are on the radar. This includes Atlantic Blue Water Resources Ltd, Mauritius, Atlantic Blue Water Investments, British Virgin Islands. Once we get the details of money trail, the other linkages could possibly come to light,” sources said.
Atlantic Blue Water Services Limited in British Virgin Islands had floated seven more companies in the tax haven country, sources said. Atlantic Blue Water Services was incorporated in November 2009 as a business company and shares were issued in the names of Drilling Dynamics Group Limited, another undisclosed offshore entity of the group.
“Subsequently the shares were transferred in the name of an employee in July 2010 and three months later it was transferred to Atlantic Blue Water Investments Ltd in the British Virgin Islands,” sources further revealed. The investigators are looking into financial details of US based American Enterprises LLC closely linked to the group.
Documents said: “Rs 40 crore had been remitted to US under the pretext of cancellation of purchase agreement by American Enterprises LLC under within a short span of three months and declarations to this effect were found to have been made to the banks for remittance purpose.” Top ED sources said the US based company is fronted by someone close the owners and there are number of business ventures in US being carried out through offshore companies.
“There is evidence which shows that proceeds of exports of gelatin by the company to US through American Enterprises LLC are not getting remitted back to India to full extent. We believe the I-T department will also gather some information under treaty provisions from the respective countries,” sources said.