ED finds prima facie case against JPMorgan in Amrapali scam

ED finds prima facie case against JPMorgan in Amrapali scam
03/12/2019 , by , in News/Views

The Enforcement Directorate on Monday told the Supreme Court it has found prima facie evidence that global financial firm JP Morgan violated the Foreign Exchange Management Act in the Amrapali Group matter.

The ED, represented by Joint Director Rajeshwar Singh, told a bench headed by Justice Arun Mishra that it will wrap up its investigation on the multi-national firm very soon and submit its report in the apex court on the next hearing scheduled on December 13.

The ED told the apex court that it has recorded the statements of the company’s country head in connection with the firm’s dealings with the now defunct Amrapali Group. Singh said that though the investigation is ongoing on the matter, but prima facie it is evident the firm was allegedly involved in the violations of provisions of the Prevention of Money Laundering Act (PMLA) and the agency will take actions accordingly. The bench asked the ED to conduct an unbiased investigation into the matter.

The Supreme Court, in its July verdict, ordered a probe into the financial fraud by the Amrapali Group, which included diversion of money of 42,000 homebuyers. The ED had begun an investigation into the Amrapali case, where it was likely to question officials of JP Morgan. The forensic audit report plays a crucial role to ascertain the nature of involvement of JP Morgan, and how did it allegedly help Amrapali Group in siphoning off homebuyers’ funds.

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