New Delhi: The Enforcement Directorate (ED) on Friday evening carried out searches at nine places, including the corporate offices of Religare Finvest Limited and RHC Holdings, in connection with its money laundering probe into the siphoning off more than Rs.2,000 crores from Religare Finvest Limited (RFL), people familiar with the development said on Saturday.

The searches, officials said, continued till early morning on Saturday during which several incriminating documents were recovered and large-scale “proceeds of crime” have been identified.

Religare, however, said that the raids were a result of a complaint made by the company. The company told the stock exchange that the ED officials, based on a complaint made by the present management of Religare Finvest Limited and pursuant to the ongoing investigation with respect to the corporate loan book, collected relevant information/ documents on January 5, 2024, to expedite the investigation as per request made by RFL recently.

The information and documents, as advised, were provided/ submitted to the officials of the authority, the company said.

A company spokesperson added that Religare had requested the ED to expedite investigations on money siphoned by erstwhile promoters Malvinder Mohan Singh, Shivinder Mohan Singh and their associates.

“Multiple cases have been initiated towards the same and various agencies are investigating these transactions. In a recent request made by RFL, ED was requested to expedite the ongoing investigations. ED officials conducted searches at various locations yesterday i.e. on 5.1.2024, to collect evidence which may help trace the proceeds of crime,” the spokesperson said.

“RFL has promised its lenders that they shall make all possible efforts to recover siphoned-off funds, and in line with the same, RFL has commissioned a forensic audit to trace assets/money trail,” added the spokesperson.

The federal agency has been investigating Religare based on a case filed by the Delhi Police in 2019. The Delhi Police had even arrested Fortis Healthcare founders Shivinder Mohan Singh and Malvinder Mohan Singh, as well as, former CMD of Religare Enterprises, Sunil Godhwani. The ED took their custody and a charge sheet was filed in January 2020.

Sharing details of raids on Friday, an officer said, “ED conducted searches at nine places in Delhi NCR in the case of siphoning off/diversion of huge funds amounting to more than ₹2000 crores from Religare Finvest Limited (RFL)”.

The premises covered during the searches include the corporate offices of RFL, M3M India Holdings, RHC Holding Pvt Ltd, Hillgrow Infrastructure Pvt Ltd, Dion Global Solutions, Prius commercial and others, said the officer, adding that only official premises were covered during the searches.

“A number of incriminating documents, including digital evidence were seized during the searches, and large-scale proceeds of crime generated out of criminal activities have been identified,” he said.

In its charge sheet in 2020, the ED had claimed that Rs.2,036 crore worth of “proceeds of crimes” was moved to 19 companies linked to the Singh brothers over eight years. In its principal ECIR (Enforcement Case Information Report), which is equivalent to the first information report, the ED is probing alleged loan fraud worth Rs.47,968 crore.

The agency has claimed that out of the total Rs.47,968 crore of loans given to 115 companies by Religare, Rs.2,036.69 crore was moved to 19 companies, which defaulted.

Most of these funds were used for the personal gain of the Singhs, the charge sheet claims. HT had reported these facts exclusively in January 2020.

The ED has alleged that the brothers – Shivinder and Malvinder Mohan Singh engaged in systematic evergreening of loans in a manner the loans were not categorized by the banks as NPAs (non-performing assets).

It was also alleged that the Singh brothers caused RFL to give unsecured, high-value purported loans to their shell companies and related/known entities.

The loans were allegedly given by the employees and management of RFL under the directions of the management team of RFL led by Sunil Godhwani (ex-CMD of Religare Enterprises Ltd), ED said.

They were used to repay earlier loans taken by entities associated with promoters under CLB (corporate law book). It was revealed that there was systematic evergreening of loans such that new loans were given at regular intervals so that existing loans could be repaid within the prescribed period to avoid categorization as NPAs of those existing entities, ED has claimed.