The Enforcement Directorate (ED) has filed a case of money laundering against the owner of a Surat-based textile firm, Babulal Jain, and his brother Devender Jain and 13 others in connection with the alleged defrauding of 13 banks to the tune of Rs 2,107 crore. The owners of Nakoda Limited had availed Rs 2,107 crore as loan from a consortium of 13 banks, led by Canara Bank, allegedly through fake invoices and documents, and later defaulted on it.
“The ED has filed a prosecution complaint before PMLA court in Mumbai against Babulal Jain, chairman, and Devender Jain, joint managing director of M/s Nakoda Limited under PMLA in bank fraud case,” a senior ED official said.
As per the ED probe, the Jain brothers had conspired with their associate Puneet Rungta and CA Jagdish Somani to issue bogus sale and purchase invoices that were utilised to open 1,212 Letters of Credit (LoC) with the bank consortium to avail loans. Somani had floated 7 firms with his family members and relatives as directors for “misusing” the loan given to Nakoda Ltd. ED sources said the fraudulently obtained LoC, issued between March 2013 and October 2014, were laundered through bogus transactions with various firms controlled by Rungta and Somani.