Mumbai: The Enforcement Directorate (ED) has attached immovable assets worth Rs 26.30 crore in connection with an alleged money laundering probe, by former employees of HUF India Pvt Ltd, a subsidiary of the German company HUF Halswerk & Furst GMBH & Co. KG. The investigation revealed that these assets were allegedly acquired using proceeds of Crime (POC) by former employees.

The attached properties include 24 immovable assets registered in the names of former employees Sunil Kumar Garg (former Managing Director) and Nikhil Agarwal (former Finance Head), along with their family members and associated firms. These assets were allegedly linked to fraudulent activities and seized under the Prevention of Money Laundering Act (PMLA), 2002. the central agency stated on Tuesday.

The ED’s investigation follows an FIR filed by Sandeep Jagdish Choudhary, the current Managing Director of HUF India Pvt Ltd, who accused Garg and Agarwal of allegedly defrauding the company of Rs 139 crore. The Chakan Police had earlier registered the FIR, and the charges were made under sections 420, 406, 409, 467, 468, 471, and 34 of the Indian Penal Code (IPC).

ED investigation revealed that between 2010 and 2020,ex-employees of M/s HUF India Pvt. Ltd. Garg and Agarwal, in alleged collaboration with other associates, manipulated company purchase orders and forged invoices. They also found that using M/s HUF fake stamps to generate Goods Receipts Notes (GRNs) and released the funds to vendors without receiving any goods/services.In return, Further, vendors had allegedly transferred the funds back to the bank accounts of Sunil Kumar Garg, Nikhil Agarwal and their family members and firms in the guise of consultancy services even though no such services were provided.

Further investigation revealed that the accused allegedly extorted commission payments from vendors by threatening to terminate contracts unless the payments were made. The illicit funds were allegedly siphoned off into their own bank accounts, as well as those of their family members and dummy firms created by them. The siphoned proceeds of crime (PoC) were allegedly used to acquire movable and immovable properties in the names of Sunil Kumar Garg, Nikhil Agarwal, their family members, and associated firms, the financial probe agency said.

Earlier, in September 2024, the Enforcement Directorate (ED) conducted searches under the Prevention of Money Laundering Act (PMLA), 2002, at the premises of the accused persons and vendors. During the operation, bank accounts, fixed deposits (FDs), shares, and investments in mutual funds worth Rs 10.15 crore were frozen.