Bhopal (Madhya Pradesh): Directorate of Enforcement (ED), Bhopal Zonal Office conducted search operations on Wednesday at four locations in a bank fraud case of Rs 44 crore allegedly committed by M/s Excel Vehicle Pvt. Ltd, its directors and others and have seized jewellery worth Rs 85 lakh and cash Rs 25 lakh, said officials here on Friday.
The raid was conducted under the provisions of Prevention of Money Laundering Act. The company had diverted the funds to their sister concerns and related entities causing loss to the bank to the tune of Rs 44 Crore. ED initiated investigation on the basis of FIR registered by the CBI.
ED investigation revealed that the said company had secured a credit facility of Rs 42 crore in 2014 from the nationalised bank. By the year 2017, the account turned NPA.
Further, in 2019, another private bank also informed the nationalised bank about prior mortgaging of certain properties by a sister concern of the company, M/s My Car (Bhopal) for securing credit facilities from the bank, whereas the said mortgaged properties were also mortgaged with Bank of India by M/s Excel Vehicle for securing credit facilities.
Accordingly, the nationalised bank declared the account fraudulent and reported it to RBI. ED investigation also revealed that funds were diverted by M/s Excel Vehicle to its sister concerns and utilized for payment towards vendors of its sister concerns and in the repayment of loans of other NBFCs etc.
During the search operation, various incriminating documents, mobile phones, diamond, gold jewellery worth Rs 85 lakh, cash to the tune of Rs 25 Lakh, have been seized. Further investigation is under progress.
