Blackmoney: Two sent to Enforcement Directorate custody in Rs 2,240 crore PMLA case

In its complaint, the PNB had alleged that the company had diverted bank funds to the tune of Rs 2240 crore, which resulted in loss to the consortium. It had alleged that they had cheated 17 nationalised and four private banks.

By: PTI | New Delhi | Published: August 22, 2017 7:48 pm
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Two directors of were on Tuesday sent to ED custody for three days in a money-laundering case related to alleged cheating of a large number of banks to the tune of Rs 2,240 crore. The directors of the Surya Vinayak Industries Limited, Sanjay Jain and Rajiv Jain, were on Tuesday arrested by Enforcement Directorate and produced before Additional Sessions Judge Rakesh Pandit, who sent them to ED custody till August 25. The accused were recently granted bail in a separate CBI case related to the matter. Advocate Nitesh Rana, appearing for ED, told the court that both were required for custodial interrogation to unearth the money trail.

He sought their custody saying that both were not cooperating with the investigation.

It was alleged that the four accused used more than 100 shell companies for routing and diverting the bank funds. The firm and the shell companies had no genuine business transactions, the agency alleged.

The company had allegedly diverted bank funds to the tune of Rs 2,240 crore, which resulted in loss to the consortium.

Over Rs 300 crore of working capital was also allegedly moved to six companies set abroad, the agency said.

The case was registered by the CBI on the complaint of Punjab National Bank (PNB), alleging that the accused were using over 100 shell companies for routing and diverting the bank funds.

In its complaint, the PNB had alleged that the company had diverted bank funds to the tune of Rs 2240 crore, which resulted in loss to the consortium.

It had alleged that they had cheated 17 nationalised and four private banks.

Later, ED also registered a case in this regard.

It was alleged that the 100 shell companies used by the accused for routing and diversion of bank funds had no genuine business transactions.

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