ED searches 8 locations in Mumbai, Haryana in Rs 220-cr bank fraud case against pharma company

ED officials, during search operations, seized/ frozen movable assets such as bank funds and demat accounts to the tune of Rs 14.53 crore.

2 min readMumbaiUpdated: Oct 25, 2024 08:58 PM IST

ED on Friday said SBML is engaged in manufacturing of active pharmaceutical ingredients and was availing various credit facilities from various banks using forged documents and bogus contracts. (File photo)

The Enforcement Directorate (ED), Mumbai Zonal Office on Wednesday conducted searches at eight locations in Mumbai and Yamuna Nagar in Haryana, in connections with a money laundering case linked to a Rs 220-crore bank fraud case against a pharma company Sharon Bio Medicine and seized assets worth Rs 14.53 crore, the agency said on Friday.

The original case is being probed by the Central Bureau of Investigation (CBI) against Mohan Prasad Kala, Savita Satish Gowda, Lalit Shambu Misra and others.

ED officials, during search operations, seized/ frozen movable assets such as bank funds and demat accounts to the tune of Rs 14.53 crore. Incriminating documents, digital devices and documents of immovable property have also been seized.

ED’s money laundering case is based on the FIR registered by CBI, ACB-Mumbai against M/s Sharon Bio Medicine (SBML) and others under various sections of IPC, 1860 and Prevention of Corruption Act- 1988 for committing fraud against banks by using bogus documents. SBML caused a loss of about Rs 220 crore to the banks.

ED on Friday said SBML is engaged in manufacturing of active pharmaceutical ingredients and was availing various credit facilities from various banks using forged documents and bogus contracts.

SBML allegedly misutilised credit facilities of banks by diverting/ siphoning of the same for creation of assets.

The anti-money laundering agency also said that a web of shell companies were created with which initially SBML had made bogus sales and bogus purchases to inflate their turnover and also furnished such bogus contracts and forged documents with banks to avail/enhance their credit facilities.

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After availing loans, funds were siphoned off through multiple layers of shell entities created in the names of SBML employees and relatives of key persons of SBML which were diverted for creation of assets, the ED added.

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