New Delhi, February 16 The ED said on Monday that a Delhi court has issued notices to Videocon Group promoter Venugopal Dhoot and a dozen other entities after taking cognizance of its chargesheet filed in connection with an alleged Rs 61,700-crore bank loan fraud linked to financing the company's oil and gas assets in Mozambique.
The prosecution complaint (chargesheet) was filed on December 18, 2024, and the special Prevention of Money Laundering Act (PMLA) court located at Rouse Avenue took cognizance on February 10, the Enforcement Directorate said in a statement.
The court has taken cognizance of the offence of money laundering and has issued notices against the 13 accused, it said.
The Videocon Group could not be contacted immediately for comments.
The accounts of Videocon Industries Ltd (VIL) and its group companies turned NPA (non-performing assets) in 2018, and the banks had filed a total claim of Rs 61,773.02 crore, including the NPA of Rs 23,647.12 crore in respect of SBLC (stand by letter of credit) facility, said the ED.
The agency has quantified the "proceeds of crime" in this case at Rs 1,136.49 crore.
The money laundering case stems from a June 2020 FIR of the CBI.
According to the ED, the investigation found that the foreign currency loan facilities availed by the Videocon Group—the SBLC facility sanctioned by the SBI-led consortium, the Jupiter facility, and the Standard Chartered Bank (SCB) facility—were systematically "diverted" from their sanctioned purposes, which were stated to be the development and refinancing of overseas oil and gas assets (in the African country Mozambique).
"The diversion of funds was carried out under the overall control and direction of the promoters of the Videocon Group, with the active involvement of overseas group entities and intermediaries," the agency alleged.
The loan proceeds were allegedly routed through Videocon Hydrocarbon Holdings Ltd (VHHL) and its overseas oil and gas subsidiaries, after which the funds were "layered" through a complex web of overseas Videocon Group companies engaged in activities unrelated to oil and gas operations, it said.
These entities included Jupiter Corporation, Venus Corporation, Eagle Corporation, Paramount Global, Quadrant Corporation, Sky Billion Trading and TGDC Guangdong Display Co. Ltd.
These funds were routed back to India and utilized for purposes "wholly unconnected" with the sanctioned objectives, including meeting expenses of non-oil businesses, making investments, and creating personal and corporate assets, the ED claimed.
The agency found that a "substantial" portion of the diverted funds was "layered" back into India through the books and bank accounts of VIL and its Indian group companies.
"Investigation found that out of the total facility of USD 4.54 billion, USD 2.02 billion has been diverted by the promoters of Videocon Group for non-intended purposes," the agency claimed.
