ED Uncovers Massive Sahara Group Scandal: Secret Asset Disposals to Evade Justice

A bombshell investigation by the Enforcement Directorate (ED) has ripped open a web of alleged deceit, revealing that the Sahara Group systematically disposed of hundreds of properties worth hundreds of crores through clandestine transactions. This audacious move, according to the ED, was a calculated attempt to shield these assets from attachment by various regulatory bodies, including the ED itself and the Securities and Exchange Board of India (SEBI).

The central thrust of the ED's chargesheet, filed against Sahara India Pariwar chief Subrata Roy and others, paints a grim picture: a concerted effort to prevent the attachment of assets under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA).

The agency alleges that the Sahara Group, already under intense scrutiny for defrauding investors, engaged in a sophisticated scheme to divert funds and offload properties without official knowledge, even as its assets were supposedly frozen.

Details emerging from the probe highlight a pattern of strategic asset transfers.

Numerous properties, some valued at hundreds of crores, were allegedly moved to subsidiary or shell companies controlled by the group. The ED specifically points to instances where properties were transferred to entities like 'Aamby Valley City' in exchange for 'secured optionally fully convertible debentures' (OFCDs).

These debentures, the agency contends, were never fully repaid, and the funds were then allegedly routed through a labyrinth of transactions to obscure their origin and true ownership.

The ED's chargesheet delves into the mechanics of this alleged money laundering operation. It claims that a staggering sum of approximately Rs 1,481 crore, raised from investors, was laundered through various Sahara Group companies.

This illicit money, the ED alleges, was then used to purchase properties both domestically and internationally, including luxury hotels in New York and London. Crucially, a significant portion of these domestic properties were subsequently sold off through secret deals, with the proceeds further integrated into the money laundering cycle.

The investigation has also brought to light alleged non-cooperation from the Sahara Group.

Despite repeated summons and requests for documentation, the ED claims the group failed to provide satisfactory explanations or complete records for these transactions. This lack of transparency has only fueled the agency's suspicion that the deals were intentionally opaque to evade regulatory oversight and judicial action.

The implications of these findings are profound, underscoring the challenges faced by regulatory bodies in recovering investor money and bringing alleged fraudsters to justice.

The ED's relentless pursuit of the Sahara Group, spanning multiple years and involving various legislative frameworks, continues to unfold, promising further revelations in a case that has captivated national attention for over a decade.