Former IAS officer sentenced to five years in prison for shocking money laundering scheme

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A special court in Ahmedabad has convicted former Indian Administrative Service (IAS) officer Pradeep Nirankarnath Sharma for money laundering, sentencing him to five years in prison. Sharma, who previously served as the District Collector of Bhuj and Chairman of the District Land Pricing Committee from 2003 to 2006, was found guilty of illegally allotting government land to Welspun India Ltd. at significantly lower rates than the government-fixed price, resulting in a loss of ₹1.2 crore to the state.

The court’s decision was based on an investigation by the Enforcement Directorate, which revealed that Sharma was involved in money laundering activities through his wife, Shyamal P. Sharma. She was made a 30% partner in a firm linked to the Welspun Group without any initial capital investment. Allegations included receiving ₹22 lakh in her NRO account and ₹7.5 lakh as a goodwill payment, which were deemed illegal gratification for favoring the company.

Additionally, the court noted that Sharma engaged in ‘hawala’ transactions to transfer around ₹1 crore to the United States and facilitated transfers to his wife’s U.S. bank accounts from various third parties. The court emphasized the seriousness of Sharma’s actions, highlighting that his position as an IAS officer and his involvement in corrupt practices warranted a strict sentence without the possibility of concurrent terms.