Bhopal: ED conducts searches in Rs 40-cr bank loan ‘fraud’ case against automobile firm

The ED case stems from a June 2020 CBI FIR filed by its anti-corruption division in Bhopal.

By: PTI

Bhopal | November 6, 2024 10:17 PM IST

2 min read

View of the Chartered Accountant BC Jain's residence where Enforcement Directorate officials conducted a raid in an alleged financial irregularities, in Bhopal, Wednesday, Nov. 6, 2024. (PTI Photo)

The Enforcement Directorate raided multiple premises here on Wednesday as part of a money laundering investigation linked to an alleged Rs 40 crore bank loan fraud case against an automobile company, official sources said.

The action came after the federal probe agency registered a criminal case under the provisions of the Prevention of Money Laundering Act (PMLA) against a city-based company named Excel Vehicle Pvt. Ltd., its promoters Manju Garg, her son Rishabh Garg and some unknown public servants and private persons.

The ED case stems from a June 2020 CBI FIR filed by its anti-corruption division in Bhopal.

A residential property in the city’s popular Arera Colony belonging to an auditor and four linked premises were raided. Some seizures and recoveries have also been made, the sources said.

The CBI filed the case against the accused after the Bank of India made a written complaint to it in November 2019 claiming a loan “fraud” of Rs 44.02 crore was perpetrated by the company and its promoters.

The account was categorised as a non performing asset (NPA) in August 2019, as per the bank complaint.

The ED, as per the sources, is looking at alleged generation of proceeds of crime by the accused in this case and the role of six group companies of the main firm (Excel Vehicle) like My Car Bhopal, My Car Indore, among others.

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