ED attaches properties worth Rs 8.70 cr in PMLA case involving Rolls Royce

The Enforcement Directorate (ED) said on Friday that it has attached movable and immovable properties worth Rs 8.70 crore held in the name of Turbotech Energy Services International Pvt. Ltd. (Turbotech) and Ashok Patni and his family in connection with a under the Prevention of Money Laundering Act (PMLA).

The ED initiated the money laundering investigation against Rolls Royce and others on the basis of FIRs registered by the CBI in 2019. The period of offence pertains to the year 2000 to 2013.

During the course of investigation, Rolls Royce admitted that it had made commission payments to Ashok Patni and his associated entities in violation of the integrity pact in respect of various purchase orders placed before ONGC, HAL and GAIL and also confirmed the payment of settlement amount Rs 80 crore to ONGC, HAL and GAIL against value of commission paid to Patni, which were proceeds of crime.

The ED said that investigation is on to ascertain if Rolls Royce made commission payments in other purchase orders in violation of the terms of contract.

The ED learnt during the investigation that Rolls Royce entered into agreements with HAL, ONGC and GAIL for supply of spare parts and services.

Rolls Royce appointed Patni, Director of Aashmore Pvt Ltd, Singapore, as commercial advisor in India for providing sales, logistic support, local business expertise and strategic advice in violation of terms and conditions of purchase orders (POs) and integrity pact with HAL, ONGC and GAIL.

In case of supply of spare parts and services, Rolls Royce paid commission to Patni. The commission was 10 to 11.3 per cent of the value of purchase orders, which was not declared prior to the execution of the contract.

The ED said that it learnt that an Indian entity, namely Turbotech owned by the Patni family, was appointed as sales representative and commercial advisor to Rolls Royce in India in 2008 for making commission payments in the garb of sham contracts.

A part of payments made by Rolls Royce to Patni and the companies associated with him is suspected to have been paid as kickbacks to unknown officials of HAL, ONGC and GAIL involved in the procurement process.

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