Amar Singh gave government contracts worth crores of rupees to his industrialist friends, misused his post of Chairman U.P.D.C. during previous Government
The Directorate of Enforcement, Government of India, after getting the information of economic fraud of crores of rupees involving Samajwadi Party Rajya Sabha M.P. Mr. Amar Singh, through its letter No.-PMLA/MISC/ LZO/2009/760, dated 27 October 2009 has sought the details from the Economic Offence Wing (E.O.W.) in this regard. The details have been forwarded to the Enforcement Directorate.
It may be recalled that Sri Shivakant Tripathi had lodged an F.I.R. on 15 October 2009 against Mr. Amar Singh and his associates under the Crime No.-458/09, under section-420/467/471/120/BIPC and 7/8/9/10/13 (1)(C)-PC Act and 3/4 PML Act at the Babupurwa Police Station in Kanpur Nagar. The F.I.R. mentions that Mr. Amar Singh and his associates prepared coded documents, amassed money wrongfully while they were public servant and forged income tax details. The Government directed the E.O.W. to investigate the matter. The F.I.R. has following allegations prima facie.
Mr. Amar Singh, during the regime of the previous government, misused his post of Chairman U.P.D.C. and awarded Government contracts worth crores of rupees to select industrialists and in lieu of his services Mr. Singh got the commission delivered to such companies, which were either directly or indirectly held by him. Such companies were also given contracts.
Between the years 2004-07, Mr. Amar Singh ensured that these companies got the contracts, even though they neither had any experience nor had resources to complete these contracts. Mr. Amar Singh opened several such companies with the assistance of economic experts, which had mutual share holding. He also posted his associates/friends in the board of directors of these companies.
After a huge cash inflow in these companies, they were merged with two companies, viz.— Messrs. Sarvottam Caps Ltd. and Messrs. Pankaja Arts and Credit Private Ltd.
It is worth mentioning that the share prices of those small companies where money was deposited from outside and which were merged with the two large companies, was artificially hiked for hundreds of times before the merger. For example, it is also alleged that the total income of Messrs. Shyam Dada Merchants Pvt. Ltd. for the year 2004-05 was Rs. 5.78 lakh and its profits stood at Rs. 1250 only before its merger with Messrs. Pankaja Arts and Credit Private Ltd. Still, the value of its shares, which was Rs. 81.77 lakh, was evaluated at Rs. 12.46 crore at the time of merger. Thus, while all small companies ceased to exist after merger, the entire money deposited in them was transferred to the two companies held by Mr. Amar Singh, his wife, friends and associates in a legal manner. Considering the serious allegations mentioned in the F.I.R., several new dimensions of the investigation have come to fore, which would be investigated by EOW and other special agencies.
The EOW of the State Government has forwarded all the documents of this case to the Directorate of Enforcement. Besides, the E.O.W. has also referred the related points to the Serious Fraud Investigation Office (SFIO) of the Ministry of Company Affairs and it has also requested to the Securities and Exchange Board of India (SEBI) to provide its report in this regard to investigate whether the regulatory provisions were violated or not and the share prices were also tampered or not. Moreover, the State Government had also forwarded all the documents of this case to the Revenue Department, which also includes Directorate of Enforcement, Government of India and the Ministry of Company Affairs of the Government of India as well.