ED Exposes Bogus Billing Network in Andhra Pradesh Skill Scam
The Enforcement Directorate (ED) has made significant progress in its investigation into the alleged Andhra Pradesh skill development scam, recording detailed statements from entry operators who have admitted to providing bogus billing or 'turnover' entries. These entries were specifically designed to keep the books of defunct or shell entities active, thereby facilitating the concealment of illicit funds.
Entry Operators Facilitate Fabricated Transactions
According to the ED, two key individuals, Shirish Chandrakant Shah and Vipin Kumar Sharma, played crucial roles in this elaborate scheme. They reportedly facilitated the routing of funds through their entities by generating fabricated invoices and documents. The purpose was to give these billing entries a "genuine image" appearance, making them seem like legitimate business transactions when they were entirely fraudulent.
Shirish Chandrakant Shah, who is linked to Allied Computers International (Asia) Ltd (ACI), admitted in his statement to transacting approximately 58 crore through shell entities under his control. He explicitly stated that this was done "only for the purpose of layering the money" and for providing entries, with no genuine business activities involved. Shah confirmed that the invoices generated were "fabricated and concocted" to create a facade of authenticity for the bogus billing entries.
Vipin Kumar Sharma corroborated this by admitting that about 7.8 crore in bogus transactions were routed through the accounts of Inweb Services Pvt Ltd, ITsmith Solutions Pvt Ltd, and Patrick Info Services Pvt Ltd. He acknowledged that these companies had no actual business operations and were used solely to provide "turnover entries" to maintain shell entities. The ED noted that bogus and fabricated invoices, along with other documents, were created to make transfers from Skillar Enterprises India Private Limited (SEPL) appear as a genuine supply of materials or services.
Multi-Layered Fund Flow and Shell Entities
The ED's supplementary prosecution complaint outlines a complex, multi-layered fund flow that explains how the alleged proceeds of crime were concealed. The money allegedly moved from the Andhra Pradesh government to Designtech Systems Private Limited (DTSPL), and then to Skillar Enterprises India Private Limited (SEPL). This network involved numerous shell entities, with invoices raised for non-existent services such as "training software development" or "royalty and subscription." When confronted, SEPL claimed that no technical work was subcontracted, further exposing the fraudulent nature of these transactions.
Specific financial details reveal the scale of this operation. The ICICI Bank account of DTSPL received 371 crore, representing the state's 10% contribution for the period between December 2015 and March 2016. DTSPL then transferred 243 crore to SEPL, a company incorporated on July 30, 2015, shortly after the tripartite agreement was signed.
Diversion of Funds and Ultimate Purpose
The ED complaint details how SEPL moved funds into multiple entities, including Cadence Partners LLP (about 17 crore) and Knowledge Podium Systems Pvt Ltd (about 38 crore), which are associated with Mukul Chandra Agrawal and his family. Other diversions included entities such as:
- ETA Greens Buildtech Pvt Ltd (about 18 crore)
- Polaris Softech Pvt Ltd (about 2.2 crore)
- Axon Smartcare India Pvt Ltd (73 lakh)
- Aptus Healthcare Pvt Ltd (41 lakh)
- Bhartiya Global Info Media Ltd (about 3.1 crore)
The "ultimate purpose" of these transactions, as alleged by the ED, was cash withdrawal, with entry operators receiving commissions for their role in facilitating the bogus billing.
Furthermore, the complaint alleges diversion of funds into immovable properties, including units in Chattarpur, New Delhi, and a plot in Dehradun. Additionally, outward remittances were made to overseas entities, such as Ben Research Pte Ltd and Inkfish Hospitality Pte Ltd in Singapore (together about 4.2 crore) and SKGWORLS Forex Ltd in the United Kingdom (73.6 lakh).
Broader Implications and Investigation
This case highlights the sophisticated methods used to conceal illicit funds through bogus billing and shell entities. The ED's findings underscore the need for stringent oversight in government-funded projects to prevent such scams. The investigation continues to unravel the full extent of the network involved in the Andhra Pradesh skill development scam, with potential implications for corporate governance and financial regulations in India.
