ED Moves to Declare Promoter's Family as Fugitive Economic Offenders Over Fake Degrees

The Enforcement Directorate has approached a Shimla court seeking to designate the promoter’s Australian-based wife and son of Manav Bharti University as fugitive economic offenders. This action is part of an ongoing money laundering probe linked to the sale of fake degrees worth Rs 387 crore.

The Enforcement Directorate (ED) said on Thursday that it has moved a Shimla court to declare the Australian-based wife and son of the promoter of a Himachal Pradesh private university as fugitive economic offenders. The move stems from a case involving the sale of fake degrees.

The federal agency lodged an application under the Fugitive Economic Offenders Act (FEOA) of 2018 with a special Prevention of Money Laundering Act (PMLA) court in Shimla. The application targets Ashoni Kanwar, wife of Raj Kumar Rana, and their son Mandeep, it said in a statement.

Rana, the promoter of Solan-based Manav Bharti University, and his affiliates allegedly obtained proceeds of crime amounting to Rs 387 crore from the sale of fake degrees, the ED noted.

Despite being summoned, Rana's wife and son have reportedly not cooperated with the investigation, choosing to reside in Australia. The ED filed a charge sheet against Rana and 15 others in December 2022, and a special PMLA court acknowledged it in January 2023, subsequently issuing summons to Kanwar and Mandeep. However, they have not responded to the court's order, prompting the issuance of open-ended non-bailable warrants in November last year.

Subsequently, the ED has filed a new application requesting the special court to initiate proceedings against Kanwar and Mandeep under Section 10 of the FEOA and to declare them fugitive economic offenders under Section 12 of the Act. This declaration would allow the agency to confiscate their assets once they are legally recognized as offenders.

Implemented by the Narendra Modi government in 2018, the FEOA aims to tackle high-value economic frauds and absconders. According to official data, the ED has submitted a total of 20 such applications to designated PMLA courts, resulting in 12 individuals, including diamond trader Nirav Modi and liquor baron Vijay Mallya, being declared fugitive economic offenders.

(With inputs from agencies.)