Shiv Vani pours scorn on ED
Shiv Vani Oil Gas & Energy (SVOGL) has hit back at allegations by India's Enforcement Directorate (ED) that it and Delhi-based affiliate Max Tech Oil & Gas Services defrauded two state-owned banks out of Rs317cr ($39m).
On April 10 (2024), the ED issued a press release saying it filed a "prosecution complaint" before a special anti-money laundering court in Delhi on April 5 (2024) against SVOGL promoters Padam Singhee and Prem Singhee under the Prevention of Money Laundering Act (2002) and that the court has "taken cognisance" of the complaint. But a well-placed source says Shiv Vani and Max Tech lawyers have "given a counter reply" to the ED's allegations.
"You know how the ED works," he claims. "Without any proof, they just write (something or the other)."
In the April 10 press release, the ED said its investigation began following two CBI reports which said the Punjab National Bank was "cheated" of Rs252cr ($31.5m) and Bank of India of Rs65cr ($8m). "Money was transferred to various shell/dummy companies in the guise of expenses and was siphoned off by the promoters (sic)," wrote the ED, which further alleges that investments unrelated to the purposes of the bank loans were made.
Further, the ED, on December 15 (2023), "conducted search operations on the group entities/persons" and recovered evidence "relating to fictitious transactions and transactions with shell entities." According to the ED, Padam Singhee had "acquired properties" of the SVOGL group "indirectly at nominal rates through shell companies he beneficially owned; the structure of the companies was planned in such a way to avoid detection by banks/enforcement agencies."
Another allegation is that these companies were operated through dummy directors, and "verification of the bank accounts and analysis of the money trails led to the discovery of many investment(s) being held and enjoyed by Padam Singhee for the benefit of himself and his family members." On March 22 (2024), the ED "provisionally attached" or froze Padam Singhee's immovable properties worth Rs57cr ($7m) following the January 25 (2024) "attachment" of Padam Singhee's investments worth Rs58.82cr ($7.3m) with fund managers and companies.