The Enforcement Directorate (ED) has registered a money laundering case against a close associate of Union Minister Gen. (retd) VK Singh over alleged financial irregularities in the supply of defence items.
The criminal case under the Prevention of Money Laundering Act (PMLA) against Shambhu Prasad Singh and others has been registered by the agency on the basis of a 2014 CBI FIR, sources said.
The case pertains to alleged corruption by unknown officials of Research and Analysis Wing (RAW) and private firms in connection with the supply of high-altitude tents to a covert unit of the intelligence agency.
A firm owned by Shambhu Prasad and his family members is alleged to have taken illegal bank loans to qualify for the bid for supply of tents or pre-fabricated dwellings for troops in high-altitude areas.
Sources said that Shambhu Prasad has for long been associated with former army chief Singh, who is now the Minister of State for External Affairs.
“The case has been registered against Shambhu Prasad and a few others who were earlier booked by CBI. The accused will soon be issued notices,” sources said.
They said that ED has identified some movable and immovable assets of the accused and these could be attached under PMLA laws after investigations and recording of statements.
Earlier, CBI had registered a case against Sai Baba Builders and Consultants and its three directors — Shyam Sunder Bhatter, JPN Singh and Manjari, Shambhu Prasad’s wife.
The CBI case was registered last year under IPC sections related to cheating and forgery and under the provisions of the Prevention of Corruption Act.
“It has been alleged that wrongful favour was shown by the officials of the SFF (Special Frontier Force) and Cabinet Secretariat in the matter of the preparation of the tender, procurement, supply and installation of the pre-fabricated shelters for SFF troops during the period 2009-13 which were purchased from the company,” CBI said.
