Jan.09, 2010, 11:44pm

A chartered accountant of Jamshedpur, S K Naredi, used to inflate the accounts of several companies of former chief minister Madhu Koda and his associates, Binod Sinha and Vikas Sinha, to turn black money into white.

Naredi's modus operandi was revealed in the chargesheet filed by the Enforcement Directorate against Vikas in the special Prevention of Money Laundering Act court recently. Vikas was arrested by the ED on November 6 last year in the money laundering case.

Referring to the statement of Naredi recorded on November 2 before income tax officials, the chargesheet further stated that the CA has accepted that the share capital and the share premium of Rs 4.8 crore was arranged by him for the Sinha brothers.

Naredi, in his statement, further stated that he had arranged money for them through companies like Arihant Tracom, Basudev Trading, Doyen Marketing, Sumit Credit, Lucky Projects and Creative Fiscal Services.

He admitted that he had asked Vikas to send money to Kolkata for the purpose and some CAs, including him, and entry operators maintained several files of the companies registered here to provide accommodation entries to the Sinha brothers and others.

Naredi even told IT officials that these companies existed only on paper and Rs 11.80 crore was the undisclosed income of Binod and Vikas Sinha together and Rs 8.30 crore that of Vikas alone.

Vikas, on the other hand, had accepted that Rs 11.80 crore was given to CAs to increase the capital of Emaar Alloys and 15% of its shares were in the name of Vijay Joshi, one of their directors.

Binod, the alleged kingpin in the multi-billion money laundering case, used to collect money from various business groups on behalf of Koda, who awarded contracts to these groups during his stint as chief minister between 2006 and 2008.

Vikas, in his statement, has accepted that Naredi was the person, who managed their financial affairs and around Rs 21 crore were transferred from the account of Lucky Projects to the accounts of Emaar Alloys and Lemos Cement.

Former chief minister Madhu Koda, his associates Binod Sinha, Vikas Sinha, Sunil Sinha, Sanjay Choudhary and Dhananjay Choudhary are all accused in the money laundering case. At present, both Vikas and Koda are at the Birsa Munda Central jail in Hotwar, Ranchi.