Indore (Madhya Pradesh): Directorate of Enforcement (ED) filed a Prosecution Complaint before the Court (PMLA) of the city on Thursday against 21 accused persons and entities in the bank fraud case of about Rs 66 crore involving M/s Ruchi Global Limited (now known as M/s Agrotrade Enterprises Limited). The court has issued notices to the accused for a pre-cognisance hearing.
The city-based Sub-Zonal Office of the ED initiated an investigation under the PMLA, 2002, based on an FIR registered by the CBI, Bhopal, against M/s Ruchi Global Limited (RGL) and its directors, alleging wrongful loss to the consortium of banks.
Investigation revealed that M/s Ruchi Global Ltd fraudulently availed non-fund-based credit facilities, such as Letters of Credit (LCs), aggregating Rs 66 crore (approx.) from the consortium banks (PNB, BOB and J&K Bank) in favour of related associate concerns.
These LCs were opened under the guise of purchasing agro-commodities against fabricated documents, including forged bills of exchange and fake lorry receipts. After discounting these bills through negotiating banks, the proceeds of crime were rapidly layered through a network of shell and layering entities and integrated back into M/s Ruchi Global Limited's bank accounts within one to three days. Due to non-payment by RGL on the due dates, all LCs devolved upon the issuing banks, resulting in a wrongful loss to the consortium banks.
Earlier during the investigation, ED carried out search action under Section 17 of the PMLA on Dec 23 last year, leading to the seizure of unaccounted cash amounting to Rs 23.50 lakh and the freezing of bank accounts. Furthermore, a Provisional Attachment Order was issued on Feb 18 this year, attaching immovable property valued at Rs 5.13 crore. Further investigation is in progress.
