Mumbai, Feb 13 (IANS) The Enforcement Directorate (ED) has provisionally attached immovable plots of land and office units worth Rs 132.85 crore in Mumbai and Raigad districts of Maharashtra as part of action in a Rs 1,438 crore bank fraud case, an official said on Friday.
The ED’s Mumbai Zonal Office attached the land and office units under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case of Ushdev International Limited (UIL), an official statement said.
The ED initiated investigation based on an FIR registered by the Central Bureau of Investigation (CBI) in Mumbai under various sections of IPC, 1860, over a complaint filed by the State Bank of India (SBI) on behalf of an SBI-led consortium of banks, alleging a loan fraud of nearly Rs 1,438 crore.
Investigation revealed that the accused fraudulently availed Cash Credit, Letters of Credit (LCs) and Buyers’ Credit by submitting forged and fabricated trade documents without any genuine underlying business transactions, the ED added.
“On this basis, consortium banks were induced to release funds. It was found that the LC proceeds were received by shell and controlled supplier entities, which were used merely as conduits,” the ED said.
“The funds were subsequently layered through multiple intermediary entities and routed back to Ushdev group companies, creating circular transactions without commercial justification,” it added.
“Further investigation revealed that a significant portion of the Cash Credit funds was diverted to the related entities, under the guise of advances,” it said.
“These entities were found to be dormant or not engaged in genuine business activities. The funds were ultimately routed to Uttam Galva Group companies, indicating layering and diversion of Proceeds of Crime,” it added.
“Investigation showed that fraudulently obtained LC proceeds were utilised to repay Buyers’ Credit facilities, which financed imports that were re-exported to overseas related entities,” the ED said.
“The export proceeds were not repatriated to India and, wherever realised abroad, were diverted to overseas subsidiaries and connected entities,” the ED added.
–IANS
rch/khz