Court issues notices to Videocon's Venugopal Dhoot, takes cognisance of ED chargesheet in alleged Rs 61,700 cr bank loan fraud
New Delhi: The Enforcement Directorate (ED) on Monday said a Delhi court has issued notices to Videocon Group promoter Venugopal Dhoot and a dozen other entities after taking cognisance of its chargesheet in an alleged ₹61,700-crore bank loan fraud linked to financing the company's oil and gas assets in Mozambique.
The prosecution complaint (chargesheet) was filed on December 18, 2024, and the special Prevention of Money Laundering Act (PMLA) court at Rouse Avenue took cognisance of the case on February 10, the agency said in a statement.
The court has taken cognisance of the offence of money laundering and issued notices to 13 accused, it added.
The Videocon Group could not be immediately reached for comment.
According to the ED, the accounts of Videocon Industries Ltd (VIL) and its group companies turned non-performing assets (NPAs) in 2018. Banks later filed total claims of ₹61,773.02 crore, including ₹23,647.12 crore related to standby letter of credit (SBLC) facilities.
The agency has quantified the alleged "proceeds of crime" at ₹1,136.49 crore.
The money laundering case stems from a June 2020 FIR registered by the Central Bureau of Investigation (CBI).
The ED alleged that foreign currency loan facilities availed by the Videocon Group - including the SBLC facility sanctioned by an SBI-led consortium, the Jupiter facility and a Standard Chartered Bank facility - were systematically diverted from their sanctioned purpose of developing and refinancing overseas oil and gas assets in Mozambique.
"The diversion of funds was carried out under the overall control and direction of the promoters of the Videocon Group, with the active involvement of overseas group entities and intermediaries," the agency said.
Loan proceeds were allegedly routed through Videocon Hydrocarbon Holdings Ltd (VHHL) and its overseas subsidiaries and then layered through a network of overseas Videocon Group companies engaged in activities unrelated to oil and gas operations.
These entities included Jupitor Corporation, Venus Corporation, Eagle Corporation, Paramount Global, Quadrant Corporation, Sky Billion Trading and TGDC Guangdong Display Co. Ltd.
The funds were later routed back to India and allegedly used for purposes "wholly unconnected" with the sanctioned objectives, including expenses of non-oil businesses, investments, and creation of personal and corporate assets, the ED said.
Investigators found that a "substantial" portion of the diverted funds was layered back into India through the books and bank accounts of VIL and its domestic group companies.
The prosecution complaint (chargesheet) was filed on December 18, 2024, and the special Prevention of Money Laundering Act (PMLA) court at Rouse Avenue took cognisance of the case on February 10, the agency said in a statement.
The court has taken cognisance of the offence of money laundering and issued notices to 13 accused, it added.
The Videocon Group could not be immediately reached for comment.
According to the ED, the accounts of Videocon Industries Ltd (VIL) and its group companies turned non-performing assets (NPAs) in 2018. Banks later filed total claims of ₹61,773.02 crore, including ₹23,647.12 crore related to standby letter of credit (SBLC) facilities.
The agency has quantified the alleged "proceeds of crime" at ₹1,136.49 crore.
The money laundering case stems from a June 2020 FIR registered by the Central Bureau of Investigation (CBI).
The ED alleged that foreign currency loan facilities availed by the Videocon Group - including the SBLC facility sanctioned by an SBI-led consortium, the Jupiter facility and a Standard Chartered Bank facility - were systematically diverted from their sanctioned purpose of developing and refinancing overseas oil and gas assets in Mozambique.
"The diversion of funds was carried out under the overall control and direction of the promoters of the Videocon Group, with the active involvement of overseas group entities and intermediaries," the agency said.
Loan proceeds were allegedly routed through Videocon Hydrocarbon Holdings Ltd (VHHL) and its overseas subsidiaries and then layered through a network of overseas Videocon Group companies engaged in activities unrelated to oil and gas operations.
These entities included Jupitor Corporation, Venus Corporation, Eagle Corporation, Paramount Global, Quadrant Corporation, Sky Billion Trading and TGDC Guangdong Display Co. Ltd.
The funds were later routed back to India and allegedly used for purposes "wholly unconnected" with the sanctioned objectives, including expenses of non-oil businesses, investments, and creation of personal and corporate assets, the ED said.
Investigators found that a "substantial" portion of the diverted funds was layered back into India through the books and bank accounts of VIL and its domestic group companies.
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