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The Enforcement Directorate (ED) on Thursday (February 27, 2025) provisionally attached properties worth ₹995.75 crore as part of a money laundering probe against former Uttar Pradesh MLC Mohammed Iqbal. The attached properties include three closed sugar mills which were allegedly fraudulently acquired through a manipulated disinvestment process.
“The attached properties include three closed sugar mills having open land parcels, buildings, and machinery held in the name of Mallow Infratech Pvt Ltd, Dynamic Sugars Pvt Ltd and Honeywell Sugars Pvt Ltd, entities controlled by Mr. Iqbal. The mills are situated at Baitalpur, Bhatni and Shahganj in Uttar Pradesh,” said a statement by the ED.
The ED initiated investigation on the basis of a First Information Report (FIR) registered by the Central Bureau of Investigation under various Sections of the IPC, 1860 and Companies Act, 1956. The FIR alleges that the former MLC and his associates fraudulently acquired multiple sugar mills in Uttar Pradesh through a manipulated disinvestment process.
“ED investigation has revealed major irregularities in the disinvestment process, including undervaluation of assets and a non-competitive bidding process. The investigation further established that the market value of the sugar mills was far higher than the prices at which they were sold. The funds used for acquiring these sugar mills were illicit money belonging to Mohammad Iqbal, received in the form of unsecured loans from V.K. Health solutions Pvt. Ltd., routed and layered through various shell entities,” the statement added.
“ED investigation also revealed that the sugar mills and their associated land assets were purchased through Special Purpose Vehicles (SPVs), namely Mallow Infratech Pvt Ltd, Dynamic Sugars Pvt Ltd and Honeywell Sugars Pvt Ltd, after which the shareholding of these companies was strategically transferred, ultimately consolidating control under Mohammad Iqbal and his close associates/family members.
The ED has traced the proceeds of crime linked to this fraudulent disinvestment and has now attached these immovable properties valued at ₹995.75 crore,” said the probe agency.
Published – February 28, 2025 03:40 am IST