After Nirav Modi, extradition of Sterling biotech case accused Hitesh Patel on cards

sterling-biotech The Indian agencies have got their first big boost in the Sterling Biotech probe with the detention of Hitel Patel

Even as the government is pursuing the extradition of fugitive diamantaire Nirav Modi in UK, another wanted fugitive in a Rs 5,000 crore money laundering case—Hitesh Narendra Bhai Patel—has been detained in Tirana in Albania.

Hitesh is the brother-in-law of Sandesara brothers, Nitin and Chetan Sandesara, who are prime accused in the Rs 5,000 crore Sterling Biotech case.

The Indian agencies have got their first big boost in the Sterling Biotech probe with the detention of Hitel Patel after the arrest of Nirav Modi, an accused in the multi-million PNB bank fraud case, last week.

India will be seeking his extradition after a Red Corner notice had already been issued against him since March 11 this year. “Hitesh was detained on March 20 and is expected to be extradited to India soon,” said the ED officials.

Hitesh along with Nitin, Chetan and Dipti Sandesara are accused in the money laundering Sterling case of the Enforcement Directorate which filed a complaint under the Fugitive Economic Offenders Act against the four accused. All four are promoters of the Sterling Group and had fled the country to avoid criminal investigation, said ED sources. The ED has sought to confiscate their properties in India and abroad.

Investigations by the ED has revealed a web of 249 shell companies in the Sterling case where the strategy was to first to cheat the banks by manipulating figures in the balance sheets of their flagship companies and induce them to sanction higher loans. Once the loans were obtained, the fund was diverted to non-mandated purposes through a web of shell companies. In this way, the loans were diverted, layered and laundered by the promoters for their personal use, said ED officials. The loan fraud pertains to domestic as well as offshore branches of Indian banks.

Hitesh becomes an important catch for the ED as he is accused of being instrumental in getting dummy directors for the shell companies used by Sandesaras for routing, rotating and laundering proceeds of crime. Sources said he also managed illicit cash transactions for the Sandesaras. “He acted as director in several companies and siphoned loan funds for purchase of luxury cars and so on,” said investigators.

The special PMLA court had issued a non bailable warrant against him.