Mumbai: The Directorate of Enforcement (ED), Mumbai Zonal Office, conducted search operations at 14 different locations across Mumbai and Delhi during the week in an alleged money laundering case and bank fraud of Rs 4,957 cr.
The federal financial crime investigation agency searched 14 locations in Prevention of Money Laundering Act (PMLA) registered against M/s Pratibha Industries Limited and others in a case of alleged bank fraud.
The search operation on the company into the business of TMT bars, pipes, steel and development of infrastructure projects led to freezing of bank balance, mutual funds worth Rs 5.4 crore and other incriminating evidence related to purchase of immovable properties.
The ED had launched a money laundering case based on FIR registered by the Central Bureau of Investigation (CBI) against Pratibha Industries Limited and its director Ajit Kulkarni on complaint filed by Bank of Baroda for allegedly defrauding a consortium of banks to the tune of Rs 4,957 Crore.
The money laundering probe had revealed Pratibha Industries Limited and its directors had allegedly hatched a criminal conspiracy to cause loss to banks and make wrongful gain by diverting loan funds through fraudulent transactions and circular trading.
The ED investigation alleged that the promoters of Pratibha Industries Limited took services of various accommodation entry providers for the purpose of layering of funds through the bank accounts of various bogus entities. “Suspicious third-party transactions were made to divert funds to the various companies to purchase immovable assets,” said senior ED official.
The accounts of Pratibha Industries Limited was classified as a non-performing asset on 13 December 2017 and declared them as fraud by the consortium banks led by Bank of Baroda.
