Netherlands authority arrests 3 for money laundering ‘for Mukesh Ambani’s company’

A statement issued by the office of the public prosecutor of the Netherlands in a report says that the local company was acting as a 'fake bills' firm

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fiod-ecd Netherlands

New Delhi: Officials in the Netherlands arrested three former employees of a company there. They have been charged with money-laundering $ 1.2 billion dollars by way of inflated billing of services allegedly for the Reliance Industries Group.

Reportedly, the suspicious company is controlled by Mukesh Ambani’s Reliance Industries. It has taken up a gas pipeline project in India.

The Reliance Industries Group has denied all these charges.

East-West Pipeline Limited (EWPL) has denied any kind of money-laundering at any stage of the implementation of the project too. EWPL was first known as Reliance Gas Transportation Infrastructure Limited (RGTIL).

The Reliance industry says that, in 2006, it had neither established a pipeline company nor did it give any contract to any company in the Netherlands.

The Netherlands’s Fiscal Intelligence and Investigation Service & Economic Investigation Service (FIOD-ECD) has arrested three former officials of a local pipeline company Hawk. These people are alleged to have earned an estimated $ 1.2 billion in the bills showing work for RGTIL and for sending this amount to Singapore’s company Biometrics Marketing Ltd.

The Singapore-based company is allegedly linked to Reliance Industries.

A statement issued by the office of the public prosecutor of the Netherlands in a report says that the local company was acting as a ‘fake bills’ firm. With the help of the Indian company, customers of gas were being charged double the cost of the service.

Earnings made from this alleged rigging were transported to Singapore’s company through a network of complex transactions via countries like Dubai, Switzerland and the Caribbean nations. It is alleged that the suspects received $ 10 million for this work.

This racket is suspected of involvement in several companies in the Netherlands.

EWPL has said that this gas line has been made by a private company. The money involved in the venture is of the promoters of the company. No public money has been used in it, and that the loan from banks and financial institutions have been repaid.

Last month, the investors of India Infrastructure Trust (Invest), led by Brookfield, agreed to buy EWPL, which is making losses, for a whopping Rs 13,000 crore.

EWPL is working on the KG-D6 gas field of Reliance Industries located on the eastern coast of the country from where it supplies gas to the customers of Gujarat in the west.