New Delhi: Controlling 32 percent stake through wife and son in a company, which was part of a syndicate carrying out illegal mining operations in Yamunanagar, “concealing” the turnover generated by mining areas beyond permissible limits, and directly receiving proceeds of crime worth Rs 26 crore — the Enforcement Directorate Saturday arrested Surender Panwar, Congress MLA from Sonipat in Haryana, on the basis of these allegations.
The federal probe agency further alleged that Panwar and his wife held 9 percent each in Development Strategies India Private Limited, which had a mining licence for nine years starting 2016, but the MLA misled the investigators during questioning, despite providing these details in the affidavit during the 2019 Haryana assembly elections.
Panwar was sent to nine-day custody of the ED Saturday by a special court under Prevention of Money Laundering Act in Ambala.
Panwar had quit Indian National Lok Dal (INLD) to join Congress before the last assembly polls, and is a first-time MLA.
The ED had, in January this year, raided his properties, during search operations in Yamunanagar and other cities, and arrested former INLD MLA from the constituency, Dilbag Singh, and his aide.
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‘Shareholder of mining syndicate’
It has been alleged that Development Strategies India, controlled by Panwar and family, had obtained a licence in August 2016 to extract sand for nine years from 23.05 hectares in Pobari village in Yamunanagar.
The company started the process in December that year, but it was terminated in 2022 on account of illegal mining and “concealing” of revenue generated.
ThePrint has seen a copy of the remand application moved before the special PMLA court in Ambala, in which the agency further alleged that Development Strategies India carried out mining outside of permissible limits between 2016 and 2022.
Additionally, ED alleged that the company reported 52.26 lakh metric tonnes of sand mined in the six years, whereas a survey conducted by an independent technical field expert revealed excavation of 77.36 lakh metric tonnes of sand in Yamunanagar during that period.
This extra and “illegal” excavation, the ED further said, led to total additional turnover of nearly Rs 10.63 crore between 2016 and 2018. This turnover was reported by Development Strategies India, and other firms part of the illegal sand mining syndicate in Haryana, in the revised income tax returns filed by them after the Income tax department carried out a raid in 2018.
According to the central agency, four companies involved in illegal mining, including Development Strategies India, produced an additional turnover of approximately Rs 92 crore in two financial years between 2016 and 2018.
Explaining the “direct” role of Panwar in the case, the ED alleged that both his wife and son recorded statements under section 50 of the PMLA, in which they said that Panwar was controlling the company and their bank accounts.
“Moreover, during statements, Surender Panwar’s wife and son, who are also shareholders in M/s. Development Strategies India Pvt. Ltd., submitted that he looks after the business transactions for the family members also, and controls the business affairs of the other family members as well, and is one of the direct beneficiaries of proceeds of crime generated by illegal mining,” ED’s remand application noted.
It added, “It is clearly established that Surender Panwar, through M/s Development Strategies India Pvt. Ltd. was involved in illegal mining activities.”
ED’s revealed that data/accounts of the syndicate were maintained in the name of GM Co. for accounting of sale of all the entities/firms, which were part of the Syndicate, and also to facilitate the profit sharing of the cash generated among the members.
“On perusal of the books of accounts of G.M. Co., it is evident that Surender Panwar, in the name of Panwar Ji & S. Panwar (W), is one of the beneficiaries of proceeds of crime,” ED said in the application. It alleged that the bank account statements of certain firms of the mining syndicate and the “S.PANWAR (W)” in the GM Co accounts revealed that the MLA and his family had transacted with these mining companies/firms.
The application further read, “However, on being enquired with Surender Panwar, he during his statement under section 50 of the PMLA, 2002 has stated that he had given loan without interest to all these company/firm and the same he had received back. Surender Panwar further submitted that he had no loan agreement nor any interest charged against these loans.”
ED claimed that it was evident that Panwar was one of the shareholders of the mining syndicate of Yamunanagar, and that he received and is in possession of the proceeds of the crime.
(Edited by Mannat Chugh)
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