The Enforcement Directorate has made a second arrest in connection with its money laundering case against a security service provider company and others that includes Shiv Sena MLA Pratap Sarnaik, officials said on Wednesday.
They said Tops Group Managing Director M Shashidharan was placed under arrest on Monday night in Mumbai under various sections of the Prevention of Money Laundering Act (PMLA).
The Enforcement Directorate is probing the role of Mr Shashidharan in connection with alleged financial irregularities in providing Tops Grup security guards for the Mumbai Metropolitan Region Development Authority (MMRDA) projects during 2014-15 and the payments made in this connection.
Mr Shashidharan recently had filed a complaint with the Mumbai Police alleging that a former director of the Tops Group, Ramesh Iyer, had allegedly perpetrated fraud with the company.
Iyer had earlier filed a police case in Mumbai against the security group and its promoter Rahul Nanda for alleged financial irregularities in the company and its transactions.
The ED had earlier arrested Amit Chandole, an alleged associate of Pratap Sarnaik, in this case.
The central probe agency, sources had said, is probing Mr Chandole’s role and alleged suspect dealings with Pratap Sarnaik, Tops Grup security providing service and Rahul Nanda, they said.
Mr Nanda, as per media reports, had denied any wrongdoing, reported news agency Press Trust of India.
Searches at ten premises of Pratap Sarnaik, Rahul Nanda and few others were launched by the ED on March 24 in neighbouring Thane and Mumbai.
The Shiv Sena had earlier called the raids a “political vendetta” and said the Maharashtra government or its leaders will not surrender to pressure from anyone.
The ED case is based on a Mumbai Police economic offences wing FIR filed against the promoters of the Tops Grup on charges of alleged irregularities in acquisition of some overseas assets in 2009 and some other transactions.
Pratap Sarnaik, 56, represents the Ovala-Maijwada constituency in the Maharashtra Legislative Assembly and is also a spokesperson for his party.
His elder son Vihang has been questioned by the agency, which has summoned the father and son for questioning again.
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