The Enforcement Directorate (ED) has accused I-PAC of raising “fake invoices” to justify receiving funds from multiple offshore entities “without providing any actual consulting or professional services,” as the federal agency sought the detention of Vinesh Chandel, director of the political consulting firm.
Chandel was produced before Delhi’s Patiala House court late on Monday night and was remanded in custody for 10 days hours after he was arrested in connection with a money laundering probe linked to alleged illegal mining and transport of coal in West Bengal. The session continued until the early hours of Tuesday morning.
ED Special Public Prosecutor Simon Benjamin told Shefali Barnala Tandon’s court that the transactions were deliberately structured to give a tinge of legitimacy to the “illicit money” and were used to layer and integrate the proceeds of crime into the formal financial system. “Large sums were deposited into I-PAC’s accounts from various entities without any real business purpose, proving that the company acted as a conduit for channeling funds,” Benjamin’s remand order quoted Benjamin as saying.
Benjamin said the evidence on record proved that the proceeds of crime were “systematically distributed” and channeled through banking channels.
Benjamin said the unaccounted cash component was used through informal channels including hawala transactions. She cited statements recorded during the investigation which she said showed the involvement of persons associated with I-PAC in facilitating the hawala arrangements. This indicates deliberate use of non-banking channels to move money, the CEO said. “This dual mechanism of channeling funds demonstrates a conscious effort to conceal the source of the proceeds of crime and highlight the proceeds of crime as legitimate business income.”
He said I-PAC, through its directors including Chandel and Rishi Raj Singh, was involved in generating, concealing and laundering the proceeds of crime through a structured mechanism of financial transactions. “The company, under his supervision, adopted a modus operandi of dividing revenues between calculated (banking channels) and non-calculated (cash/non-banking channels) modes, thereby deliberately suppressing the true nature and extent of its financial activities.”
Benjamin cited documented evidence, including seized records and data, which he said clearly showed that this fork was systematic and deliberate.
The CEO accused Chandel of making false and misleading statements by denying the existence of cash transactions and misrepresenting the nature of the company’s activities.
Benjamin said Shandel and other managers were able to delete emails and sensitive financial data from key employees’ accounts. The agency also described Shandel as a flight risk.
In January, the CEO accused West Bengal Chief Minister Mamata Banerjee of obstructing searches and removing evidence when the CEO conducted raids on the I-PAC office and the residence of its director, Pratik Jain. Banerjee alleged that the ED tried to seize documents related to election strategy from the I-PAC headquarters ahead of the West Bengal Assembly elections. Banerjee said the CEO targeted I-PAC, which works with the Trinamool Congress, to steal party manifestos.
I-PAC said in January that its role was limited to transparent and professional political advice, free from the influence of political ideology. “We believe in this [the raids] It raises serious concerns and sets a worrying precedent. Regardless, we provided full cooperation… and participated in the process in full compliance with the law.”
