Money laundering: Rs 834 forex scam unearthed; Geodesic Ltd CA arrested
Money laundering: Geodesic Ltd was allegedly involved in a Foreign Currency Convertible Bond (FCCB) default case. FCCB is a convertible bond issued in a currency other than the issuer’s domestic currency
Enforcement Directorate (ED) arrested a chartered accountant and tax consultant of Geodesic Ltd on Friday for allegedly laundering around Rs 834 crore of the firm’s funds. The company was allegedly involved in a Foreign Currency Convertible Bond (FCCB) default case. FCCB is a convertible bond issued in a currency other than the issuer’s domestic currency.
According to ED officials, 51-year-old Dinesh Jajodia was a director and authorised signatory of companies in UAE, Hong Kong and the British Virgin Islands. The utilisation of funds was proposed as an investment in foreign subsidiaries and new overseas acquisitions. The amount was first credited in Geodesic’s Citibank London account, which acted as trustee, and then transferred into accounts of its overseas subsidiaries — Geodesic Holdings Ltd (Mauritius) and Geodesic Technology Solutions Ltd (Hong Kong). “Jajodia defrauded shareholders and FCCB holders by creating a web of shell companies in through fictitious dealings,” said an ED official said.