Mumbai: The Enforcement Directorate (ED) on Friday arrested Amit Ashok Thepade in connection with a Rs 117.06-crore fraud involving Canara Bank. "Thepade, who had been evading authorities for several months, was traced to a five-star hotel in South Mumbai, where he had reportedly been staying for the past two months," the central agency said on Monday.
Luxury assets and accounts seized
According to ED officials, searches at the hotel led to the seizure of cash worth Rs 9.5 lakh, gold and diamond jewellery worth Rs 2.33 crore, bullion, two vehicles, and several digital devices suspected to hold crucial financial records. Over 50 bank accounts linked to him were also frozen. The special court under the Prevention of Money Laundering Act (PMLA) has remanded him to ED custody for five days.
CBI FIRs reveal fraudulent loan practices
The case stems from two FIRs filed by the CBI Anti-Corruption Branch, Pune, against Galaxy Constructions & Contractors Pvt Ltd (GCCPL) and Mitsom Enterprises Pvt Ltd (MEPL). Both firms are owned and managed by accused Amit Thepade and his father Ashok Shivnarayan Thepade. The investigation alleges that both firms fraudulently obtained loans by mortgaging properties that had already been sold or pledging the same properties multiple times. The diverted funds were reportedly used for personal expenses and to maintain a lavish lifestyle.
Complex financial web used to mask fraud
The CBI noted that loan irregularities were masked through a complex web of corporate and financial transactions, making fund flows difficult to track. For example, Flat Nos. 303 and 304 of Jay Parijat Cooperative Housing Society, Bhosale Nagar, Pune, were sold in December 2013 to Vijay Tukaram Raundal. In April 2014, Galaxy Homes allegedly executed fraudulent transfer deeds, selling the same flats back to GCCPL, which were then mortgaged with Canara Bank for additional loans. Investigations revealed that the companies diverted funds for personal use instead of repaying the bank, resulting in a wrongful loss of Rs 74.35 crore as of May 2020.
Bank action and ongoing probe
The bank had initiated action under the SARFAESI Act in 2018, issuing demand notices and taking symbolic possession of the secured assets. Legal notices from the original buyers highlighted that the flats had already been sold, but the companies claimed these were “investment agreements” and stalled the cancellation process.
ED intensifies forensic audit
The ED said its probe revealed that Thepade played a pivotal role in creating a complex financial structure involving both GCCPL and MEPL to integrate proceeds of crime and disguise them as legitimate assets. The arrest followed extensive surveillance and forensic financial analysis, with officials noting that the accused had attempted to evade authorities for months.
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The agency is continuing its probe to trace diverted funds, uncover benami assets, and identify other beneficiaries, with a forensic audit of both companies ongoing, although the accused have reportedly not cooperated fully.
