Lucknow: A special CBI/ED court in Lucknow issued an NBW against Saharanpur businessman Mohammad Iqbal after the ED informed the court that he repeatedly ignored summons and obstructed a high-value money laundering investigation linked to the fraudulent acquisition of multiple sugar mills in UP.The order was passed by special judge (CBI/ED) Rahul Prakash, who noted that Iqbal was served summons thrice — on Oct 23, Oct 28 and Nov 11, 2025 — but failed to appear, causing the probe to stall. The case originates from a CBI FIR (registered by CBI/ACB Lucknow on April 25, 2019), after which the ED lodged ECIR No. LKZO/04/2019. According to the ED, an elaborate network of family-controlled companies, partnership firms and charitable trusts—all allegedly managed by Iqbal and his relatives—was created for illicit fund movement, asset inflation and diversion of public assets. Two key companies — Griasho Company Pvt Ltd and Namrata Marketing Pvt Ltd linked to Iqbal — participated in the 2011 bidding process of UP Rajya Chini Evam Ganna Vikas Nigam Ltd (UPRCGVNL) and acquired seven sugar mills. The ED said the mills were acquired after massive asset dilution, allowing them to be purchased at artificially deflated values. The total market value of these assets was Rs 450.35 crore, but were allegedly obtained for only Rs 27.66 crore.The present market value of these mills has risen to Rs 995.75 crore, an increase the ED says must also be treated as proceeds of crime under Section 2(1)(u) of the PMLA. An attachment order worth Rs 995.75 crore was issued on Feb 27, 2025.The ED said the financial layering was carried out through VK Health Solutions Pvt Ltd, which allegedly converted tainted funds into unsecured loans routed through special purpose vehicles (SPVs), and then used to acquire the mills—an indicator of systematic laundering of black money.After NBW, the ED is expected to intensify action to secure his presence and move toward completing the investigation.
