Mumbai: The Directorate of Enforcement (ED), Mumbai Zonal Office conducted multiple search operations at residential and commercial premises located in Nashik, Kopargaon (Shirdi), and Thane in Rs 350 crore alleged bank loan fraud case investigation against M/s KGS Sugar and others.
The federal financial intelligence agency seized Indian currency amounting to Rs 70.39 Lakh, gold Jewellery valued at Rs 1.36 Crore (approx.), a high-end luxury vehicle, Demat account/shares valued at Rs 10 lakh (approx.) multiple electronics devices, documents pertaining to benami properties, other incriminating documents and records during the search operations.
The case pertains to the fraudulent procurement of bank loans exceeding Rs 350 Crore from a consortium of banks led by Canara Bank by submitting forged and fictitious documents, and the subsequent diversion and siphoning of the funds for personal gains and acquisition of assets.
The ED initiated investigation on the basis of an FIR and subsequent chargesheet filed by Kadim Jalna Police Station, Jalna district of Maharashtra for offences of cheating, criminal conspiracy, use of forged documents or electronic records as genuine, and criminal misconduct committed by M/s KGS Sugar and Infra Corporation Ltd along with director Dinkar S. Bodke and others.
According to ED investigation M/s KGS Sugar fraudulently obtained bank loans of around Rs 350 Crore which were siphoned off through multiple round-tripping and diversions, using entities specially incorporated by the accused persons for the purpose. The diverted funds were routed through entities linked to civil contractors, EPC contractors, and others, in the garb of genuine business transactions.
