City bizman booked for Rs14 crore embezzlement

Nagpur: The Enforcement Directorate (ED) is learnt to have registered a case under the Prevention of Money Laundering Act (PMLA 2002) against businessman Pramod Manmode, who also heads Nirmal Ujjwal Credit Cooperative Society.

The charge is in a case involving alleged diversion of Rs14 crore collected from residents of Nirmal Nagari, a real estate project promoted by Manmode.

ED’s action comes on the basis of a first information report (FIR) registered by the state police’s Economic Offences Wing (EOW) after complaints by Nirmal Nagari residents.

Manmode told TOI he was admitted in a hospital and not aware of any action by the ED. He also denied having received any summons from the ED.

Complainant Ravindra Puttewar said Manmode had collected over Rs14 crore from residents of Nirmal Nagari in the name of maintenance, electricity and water charges. The funds were, however, diverted into the Nirmal Ujjwal Credit Cooperative Society, instead of being used for the stated purpose. “This amounts to misuse of residents’ funds. The money was used for lending through the cooperative society,” he said.

Puttewar told TOI he had filed the complaint before both, the EOW and ED. In the complaint with the ED, he had also highlighted the unregulated deposits being taken by the credit cooperative society.

Puttewar said his complaint also says that Manmode had also diverted Rs203 crore from the cooperative society to a textile project in Kondhali, and Rs37 crore for purchase of land at a separate location. Another Rs103 crore collected as deposits in the society were invested in mutual funds in violation of norms, he alleged.