MUMBAI: The Enforcement Directorate (ED) has arrested Dinesh Jajodia, chartered accountant-cum-tax consultant of a city-based Geodesic Ltd, in connection with its ongoing probe against the firm which was embroiled in a Foreign Currency Convertible Bond (FCCB) default case, an official said on Friday.
Jajodia is accused of aiding laundering of tainted FCCB amounting to $125 million, the ED official said. FCCB is a type of convertible bond issued in a currency different than the issuer's domestic currency.
Director and authorised signatory of various overseas companies situated in UAE, Hong Kong and British Virgin Islands, Jajodia was held from his residence in Mumbai.
The 51-year-old was a practicing chartered accountant and tax consultant for Geodesic Ltd which had raised $125 million under FCCB for which overseas account of Citibank in London acted as a trustee.
The utilisation of the funds was proposed as investment in foreign subsidiaries or new overseas acquisitions, the ED official said.
It also said the amount was first credited in the overseas account (Citibank London) of Geodesic Ltd and thereafter transferred directly into the account of its overseas subsidiaries -- Mauritius-based Geodesic Holdings Ltd and Hongkong-based Geodesic Technology Solutions Ltd.
"On maturity, Geodesic Ltd had failed to adhere to the commitment given to Citibank London for the repayment of the amount totalling to $157.06 million," the statement said.
The investigation revealed that the accused hatched a criminal conspiracy to defraud the shareholders as well as FCCB holders (overseas investors) by creating a web of shell companies in various countries through fictitious dealings in order to receive wrongful gains.