The Enforcement Directorate (ED) has attached assets worth ₹ 36.12 crore held by Sanjay Gupta, retired IAS officer and his wife Neelu along with assets held in Neesa Group Companies - Neesa Leisure, Neesa Technologies, Neesa Agritech and Foods under Prevention of Money Laundering Act 2002 (PMLA) in a case of criminal misconduct and misappropriation of funds of Metro Link Express for Gandhinagar and Ahmedabad Company (MEGA).

The attached properties include flats at Dhananjay Towers, Satellite in Ahmedabad Casela Towers, Jodhpur, Ahmedabad, one flat at Agarwal Apartment, Vejalpur in Ahmedabad, Cambay Hotel at Thaltej, and plots and factories at Visalpur, Changodar and Daskroi in Ahmedabad.

Based on first information report and chargesheets filed by CID Crime, Gandhinagar Zone, ED initiated investigation under Prevention of Money Laundering Act (PMLA) against Sanjay Gupta and others for misappropriation of public funds from MEGA.

Gupta was a 1985 batch IAS officer of Gujarat cadre who quit the service in the year 2002 and started his own hospitality business in the name of Neesa Group of companies. He became Chairman, MEGA in April 2011 and continued till August 2013. Investigation under PMLA revealed that Sanjay Gupta during his tenure as Chairman, MEGA, arbitrarily appointed his close associates in various officials’ positions in MEGA who were previously working with him in Neesa Group.

Accused Sanjay Gupta also floated a number of dummy companies with these employees, as Directors and got opened bank accounts of these companies during 2012-13. These fictitious companies further raised bogus invoices to MEGA without any supply of goods or services. Investigation also revealed that Gupta didn’t adopt any procedure for awarding of work contract in MEGA through wide circulation of advertisement through media. These bogus bills were certified by the illegally recruited MEGA officials and payments were finally approved by him, as the administrative and financial powers were vested in him.

Gupta also arranged for deposit of illicit cash, demand drafts and cheques in the account of these dummy companies, which was generated through purported cheque discounters and in the guise of consideration of allotment of contracts in MEGA. Investigation also revealed that out of the these proceeds of crime, an amount of ₹36.12 crore were layered and diverted to the accounts of Gupta, his wife Neelu Gupta and Neesa Group companies which were further utilised in business activities of the said companies and also for making repayments to their respective loan accounts.

Related Topics
comment COMMENT NOW