Mumbai: The special court for Prevention of Money Laundering Act (PMLA) extended the Enforcement Directorate’s (ED) custody of Priyavrat Mandhana, son of Purushottam Mandhana (promoter and chairman of Mandhana Industries Ltd; MIL) till August 6.
Priyavrat Mandhana Arrested
Priyavrat, who acted as vice president (corporate affairs) of MIL, was arrested earlier this week in connection with the Rs975 crore bank fraud case.
On Friday, while seeking his custody, the ED contended that the shell companies managed by him, such as Azarel Fashion Pvt Ltd, were used to rig the share prices of MIL.
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“Demat accounts in the names of such entities were opened with different depository participants. Such accounts were used to undertake off-market trades to manipulate the price of MIL shares,” the ED claimed.
The ED has claimed that the Mandhana family siphoned loan funds for their personal enrichment by transferring a substantial amount to Azarel before shifting the funds to various shell companies. ED has alleged that Azarel was a fictitious entity floated only to route these funds.
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