Directorate of Enforcement (ED), Nagpur has arrested Laxmi Narain Kaushik on March 6th 2024 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in the case of defrauding & cheating. He was produced before Special PMLA Court, Nagpur on March 7th wherein his seven days ED custody was granted by the Court.
ED initiated investigation on the basis of two FIRs registered by Vapi Police Station, Gujarat under various sections of IPC, 1860 wherein it has been alleged that during the year 2018 to 2020, Laxmi Narain Kaushik, along with his accomplice entered into a criminal conspiracy and committed criminal breach of trust with M/s Welspun Living Limited by procuring cotton of low quality at inflated costs for his own financial benefit. He also engaged in extortion and threatening of witnesses.
ED investigation revealed that unexplained credits were received by Laxmi Narain Kaushik in the companies/entities beneficially owned and controlled by him, from some bogus entities/ shell companies which were further routed by him using a convoluted web of entities beneficially controlled by him. He had created two companies for the purpose of layering and integration of the POC to project it as untainted.
Further investigation in this case is under progress.