Madhu Koda's money trail abroad unravelled

NEW DELHI: Enforcement Directorate and Income Tax sleuths, on the trail of former Jharkhand CM Madhu Koda, have hit a jackpot. They have 
uncovered details of transfer of at least $110 million (about Rs 550 crore) to a frontman in Dubai for overseas investments and acquisitions by Koda’s associates.

The findings are a setback to Koda who has denied doing any wrong, and challenged the agencies to prove the charges against him.

The breakthrough came when officials seized records of Mumbai-based Balaji Bullion and Retailers, suspected to have been used to transfer at least $10 million to a Dubai frontman, Abdul Bhai. Investigators suspect the firm could have sent as much as Rs 990 crore, sources said.

Sources believe $100 million (Rs 500 crore) might have also been sent to Abdul Bhai through Mumbai-based contact, Manoj Punamia.

Tax officials have been able to get a ‘‘confession’’ from Mumbai-based aide Arvind Vyas that he arranged delivery of $1 million to Sanjay Chaudhary — who oversaw Koda’s operations in Dubai.

Mumbai-based Arvind Vyas has ‘confessed’ that he arranged delivery of $1 million to Sanjay Chaudhary — a key aide of former Jharkhand CM Madhu Koda.

Both Vyas and Chaudhary are directors of Balaji Bullion and Retailers which has on its board another accomplice of Koda — Vinod Sinha. The concern seems to have been floated specially for the purpose of funnelling the money for investments and acquisitions in Dubai, Liberia and other places.

The launch of the firm is testimony to the planning that went into managing the flow of money, and has surprised investigators, considering the background of Koda’s aides, Sinha and Chaudhary. Sinha was a milk vendor not long ago, while Chaudhary’s father hawked chewing tobacco on his bicycle till recently.

Chaudhary had allegedly registered two companies — Cam Pech Manufacturing LLC and Blue Techno — in Dubai which were part of a web of deception that was used for handling Koda’s investments and assets abroad. Vijay Joshi, Vikash Sinha and Dhananjay Chaudhary helped Sanjay Chaudhary with money laundering in Dubai.

Investigations have brought out evidence of the alleged largescale corruption that flourished under Koda, with former CM and ministerial colleagues along with leading lights of UPA allies — JMM and RJD — milking the political instability in Jharkhand.
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