ED conducts searches at 14 locations in Mumbai, Delhi in Rs 4,957 crore bank fraud case
The ED searches were part of an investigation into a fraud case against Pratibha Industries Limited and its directors. Bank accounts and mutual funds worth Rs 5.4 crore were frozen as part of the probe.
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The Ahmedabad Zonal Office of the ED has filed a case under PMLA. (File photo)The Enforcement Directorate (ED) in Mumbai said on Saturday that it conducted searches at 14 locations in Mumbai and Delhi on Thursday as part of its investigation into a Rs 4,957 crore bank fraud case against Pratibha Industries Limited, a Mumbai-based private company, and its directors. The company is into the business of TMT bars, pipes, steel, etc., and also into development of infrastructure projects.
Bank accounts and mutual funds worth Rs 5.4 crore were frozen and other incriminating evidence related to the purchase of immovable properties was seized, the central agency said.
The ED’s money laundering case is based on an FIR registered by the Central Bureau of Investigation against Pratibha Industries Limited, its director Ajit Kulkarni, and others based on a complaint filed by Bank of Baroda for defrauding a consortium of banks to the tune of Rs 4,957 crore.
Pratibha Industries Limited and its directors allegedly hatched a criminal conspiracy to cause loss to banks and a corresponding wrongful gain to themselves by diverting loan funds through fraudulent transactions and circular trading. The account of Pratibha Industries Limited was classified as a non-performing asset on December 31, 2017, and was also declared as fraud by the consortium banks.
In a statement released on Saturday, the ED said its investigation has revealed that the promoters of Pratibha Industries Limited took services of various accommodation entry providers for the purpose of layering funds through the bank accounts of various bogus entities.
Suspicious third-party transactions were made to divert funds to the various companies to purchase immovable assets, the ED said. The agency is further investigating the alleged irregularities.
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