ED Conducts Searches At 4 Premises Link To Nimar Agro Park In Sendhwa, In ₹13.99 Crore Loan Misutilasation

Bhopal (Madhya Pradesh): The Directorate of Enforcement (ED) has conducted search operations at four premises linked to M/s Nimar Agro Park, its partners and its connected entities M/s B.S. Cotton Pvt. Ltd., M/s Shree Rajrajeshwar Developers and M/s Shree Rajrajeshwar Ventures located in Sendhwa, Barwani district, under the provisions of the Prevention of Money Laundering Act (PMLA), said officials on Thursday.

Search operations were undertaken in connection with an investigation relating to alleged diversion and misutilisation of Rs 13.99 crore loan sanctioned by NABARD to M/s Nimar Agro Park.

The ED investigation was initiated on the basis of an FIR registered by CBI, Economic Offences Branch, Kolkata, against the partners of the company alleging criminal conspiracy, cheating, criminal breach of trust, forgery and corruption.

The ED investigation revealed that the company had availed a term loan of the bank in 2019 under the Food Processing Fund Scheme for establishment of an Agro Processing Cluster (APC) at Village Jamli, Sendhwa.

Project cost

The total project cost was Rs 31.04 crore, comprising Rs 10 crore grant-in-aid sanctioned by the Ministry of Food Processing Industries, Rs 7.05 crore promoters' contribution and the bank term loan.

ED investigation further revealed that the loan funds were allegedly diverted and misutilised instead of being utilised for the intended project purposes.

The NPA

The project remained incomplete, and the loan account was subsequently classified as NPA on September 29, 2024, resulting in wrongful loss of Rs 13.99 crore to the bank.

Searches resulted in seizure of various incriminating documents, digital devices and freezing of four bank lockers.

The search operation was undertaken to trace and identify documentary evidence, financial records and assets acquired from or linked to the alleged Proceeds of Crime, as well as to ascertain the complete money trail and the role of the persons/entities involved in the alleged conspiracy.