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Representative image

ED provisionally attaches properties worth Rs 175.29 crore in bank fraud case

ANI | Updated: Apr 20, 2020 19:44 IST


New Delhi [India], April 20 (ANI): The Enforcement Directorate (ED) has provisionally attached 124 immovable properties worth Rs 175.29 crore of Prakash Vanijya Private Limited and other associate companies under PMLA, 2002, in connection with a bank fraud case.
"The attached properties consist of properties and business establishments in the name of Prakash Vanijya Private Limited and other associate companies. Among these 124 properties, 10 are located in Kolkata amounting to Rs 67.19 crore, three in Jalpaiguri amounting to Rs 98.70 Crore and 111 in Chhattisgarh amounting to Rs 9.40 crores," the ED said in a statement on Monday.
The economic offences watchdog said that these properties were traced after unfolding the layered transactions during a money-laundering investigation.

"On the basis of charge-sheet filed by CBI, BS&FC, Kolkata against Prakash Vanijya Private Limited its director Mannoj Kumar Jain and others for defrauding Central Bank of India of Rs 234.57 crore investigation under PMLA was initiated," the ED said.
"The investigation revealed that Letter of Credit (LC) facility got sanctioned by accused Jain and the same was misused as LCs were issued without any underlying transactions by using fictitious and shell companies and without any real business or trade," it added.
The LCs were discounted by Jain through fictitious beneficiary companies and funds received back by him by round-tripping through his shell companies.
The ED said that these funds were used for personal purpose and for settling other liabilities through kite flying operations, and added that after availing credit facilities from bank, the accused started acquiring immovable landed properties.
"The purchase price of these properties were highly undervalued and balance amount were paid in cash. These cash amounts were illegally generated out of defrauded amount from the banks. Some of these properties were then offered as collateral securities to the bank for enhancing the credit limit," ED said. (ANI)

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