Mumbai: The Enforcement Directorate in Mumbai has conducted searches at 12 different locations in Mumbai in connection with a money laundering case linked to an alleged Rs 975 crore bank loan fraud involving Mandhana Industries Limited.
During the search operation, more than 140 bank accounts, five lockers, shares, and securities worth Rs 5 crore were found and subsequently frozen. Additionally, three high-end cars, including Lexus and Mercedes Benz, multiple expensive watches such as Rolex and Hublot, a large number of digital devices, and several incriminating documents were seized. The searches also uncovered crucial incriminating documents, including numerous property records, the agency reported.
The ED's money laundering case is based on an FIR registered by the CBI Mumbai against Mandhana Industries Ltd (now GB Global Ltd), Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana, and others. The Bank of Baroda has filed a complaint in the CBI's case, alleging that the accused persons defrauded a consortium of banks to the tune of Rs 975.08 crore.
According to the CBI's allegations, Mandhana Industries Ltd and its directors conspired to cause losses to banks and gain wrongful benefits for themselves by diverting loan funds through fraudulent transactions and circular trading. The CBI has yet to file a charge sheet in the case.
The ED's money laundering investigation revealed that various fictitious entities were incorporated by the directors of Mandhana Industries Limited under the names of company employees for the purpose of layering funds through the bank accounts of these entities.
The ED stated that suspicious third-party transactions were used to divert funds to the accounts of promoters/directors and their family members. Bogus purchases were recorded against payments made to different entities providing accommodation entries.
