ED Files Prosecution Complaint in Gandhamardan Loading Agency Money Laundering Case.

Headnote:

The Directorate of Enforcement (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act, 2002 against 11 accused persons in connection with large-scale misappropriation of funds of Gandhamardan Loading Agency & Transporting Co-operative Society Ltd., Keonjhar, Odisha. The case involves alleged diversion of society funds through fraudulent accounting practices and layered financial transactions, resulting in Proceeds of Crime amounting to ₹22.26 crore.

Background:

1. ED initiated investigation based on an FIR registered by the Economic Offences Wing (EOW), Bhubaneswar, under various provisions of the Indian Penal Code, 1860, relating to cheating, forgery, and criminal conspiracy.
2. The scheduled offence pertains to systematic diversion and misappropriation of funds belonging to Gandhamardan Loading Agency & Transporting Co-operative Society Ltd.
3. The misappropriation was allegedly carried out by falsely showing expenditures under various heads, including:
4. Periphery development
5. Village expenses
6. Fuel charges
7. EPF deductions
8. Other fabricated claims

Findings of ED Investigation:

1. ED investigation revealed that the cooperative society was effectively controlled by Soumya Sankar Chakra @ Raja Chakra, the main accused.
2. In connivance with:
3. Manas Ranjan Barik, then President, and
4. Utkal Das, then Secretary of the society,
5. funds were fraudulently diverted.
6. The diversion of funds was carried out through:
7. Self and bearer cheques
8. Cash withdrawals
9. Layered banking transactions
10. The illegally diverted funds were utilised for:
11. Personal enrichment of Soumya Sankar Chakra
12. Settlement of dues of various business entities owned and controlled by him
13. ED found no genuine work orders, invoices, or evidence of actual development activities to justify the expenditures reflected in the society’s books of accounts.

Attachment and Enforcement Action:

During the course of investigation, ED conducted search operations under Section 17 of the PMLA at multiple premises.

ED provisionally attached Proceeds of Crime amounting to ₹22.26 crore.

A Prosecution Complaint has been filed against 11 accused persons, including:

Soumya Sankar Chakra @ Raja Chakra

His key associates

Office bearers of the cooperative society

Status of Investigation:

1. Further investigation in the matter is under progress.