The Enforcement Directorate (ED) in Mumbai stated on Saturday that it performed searches at 14 areas in Mumbai and Delhi on Thursday as a part of its investigation right into a Rs 4,957 crore financial institution fraud case towards Pratibha Industries Restricted, a Mumbai-based personal firm, and its administrators. The corporate is into the enterprise of TMT bars, pipes, metal, and many others., and in addition into improvement of infrastructure tasks.
Financial institution accounts and mutual funds price Rs 5.4 crore have been frozen and different incriminating proof associated to the acquisition of immovable properties was seized, the central company stated.
The ED’s cash laundering case relies on an FIR registered by the Central Bureau of Investigation towards Pratibha Industries Restricted, its director Ajit Kulkarni, and others primarily based on a grievance filed by Financial institution of Baroda for defrauding a consortium of banks to the tune of Rs 4,957 crore.
Pratibha Industries Restricted and its administrators allegedly hatched a legal conspiracy to trigger loss to banks and a corresponding wrongful acquire to themselves by diverting mortgage funds via fraudulent transactions and round buying and selling. The account of Pratibha Industries Restricted was categorised as a non-performing asset on December 31, 2017, and was additionally declared as fraud by the consortium banks.
In an announcement launched on Saturday, the ED stated its investigation has revealed that the promoters of Pratibha Industries Restricted took companies of varied lodging entry suppliers for the aim of layering funds via the financial institution accounts of varied bogus entities.
Suspicious third-party transactions have been made to divert funds to the varied corporations to buy immovable property, the ED stated. The company is additional investigating the alleged irregularities.
Uncover the Advantages of Our Subscription!
Keep knowledgeable with entry to our award-winning journalism.
Keep away from misinformation with trusted, correct reporting.
Make smarter choices with insights that matter.
Select your subscription bundle
