Home / Crime and Justice / Videocon Loan Scam: Delhi Court Summons 13 Accused
Videocon Loan Scam: Delhi Court Summons 13 Accused
17 Feb
Summary
- Court took cognisance of a complaint against industrialist V Dhoot.
- Over $2 billion of loans were allegedly diverted from sanctioned purposes.
- Funds were routed through shell companies for unrelated businesses.
A special court in Delhi has initiated proceedings against industrialist V Dhoot and 12 other individuals and entities regarding the Videocon Mozambique oil deal. The Enforcement Directorate (ED) filed a prosecution complaint alleging a large-scale money-laundering scheme. The court has issued notices to all 13 accused, marking a significant step in the investigation.
The ED's probe, stemming from a June 2020 CBI FIR, reveals a systematic diversion of foreign currency loan facilities. These funds, totaling approximately USD 2.02 billion out of a USD 4.54 billion facility, were allegedly siphoned off from their sanctioned purposes for overseas oil and gas asset development and refinancing.
The alleged modus operandi involved routing loan proceeds through specific Videocon entities before layering them through a network of overseas companies. These transactions, including circular payments and inter-company loans, facilitated the diversion of funds back to India.
Upon returning to India, the diverted funds were allegedly used for purposes entirely unconnected with the oil and gas ventures. This included financing non-oil businesses, making investments, and acquiring personal and corporate assets. The ED stated that these inflows were disguised as legitimate receipts to conceal their illicit origin.
Videocon Industries Limited and its group companies' accounts turned into non-performing assets in 2018. Banks have lodged claims totaling Rs 61,773.02 crore, with Rs 23,647.12 crore specifically linked to the SBLC facility, underscoring the scale of the financial irregularities.
