KRBL shares fall 15%, as ED arrests its Joint MD in VVIP choppers case

KRBL shares fall 15%, as ED arrests its Joint MD in VVIP choppers case

On Monday as the Enforcement Directorate (ED) has arrested the joint managing director of KRBL, Anoop Kumar Gupta in connection with a money laundering probe into the over ₹3,600-crore VVIP choppers purchase scam case.

The share price of leading basmati rice producer, KRBL has fallen by over 15% on Monday as the Enforcement Directorate (ED) has arrested the joint managing director of KRBL, Anoop Kumar Gupta in connection with a money laundering probe into the over ₹3,600-crore VVIP choppers purchase scam case.

They said Gupta, has been sent to five-day custody of the central probe agency after he was produced before a special court for cases under the Prevention of Money Laundering Act (PMLA) here.

Year to date, the stock of the basmati rice seller is down by over 3%. In the last one year, the share price has gone down by 14%.

ED sources said Gupta was arrested in the AgustaWestland VVIP choppers deal case and alleged he was not cooperating in the ongoing probe.

His custodial interrogation was necessary in light of some fresh evidence gathered by the Enforcement Directorate that pertains to “proceeds of crime” or alleged kickbacks of the deal being paid to a firm “controlled” by Gupta, they said.

Gupta’s lawyers told the court that his arrest was “not justified” and pleaded that he should not be sent to ED custody owing to his medical condition as he suffers from diabetes and other ailments.

The agency, in its remand application, said two streams were used for channelling about Euro 70 million worth “proceeds of crime” or bribe money to various political persons, bureaucrats and Indian Air Force officials in return of swinging the 12 helicopters deal in favour of AgustaWestland.

The businessman was named in a charge sheet by the agency in December in that case that pertains to payment of alleged commission by Embraer to clinch the USD 208-million deal with India, in which it is suspected and alleged that cwere paid.

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