Some of the entry operators from Mumbai who were allegedly involved in laundering money through shell companies are under the radar of the Enforcement Directorate (ED) in connection with the loan fraud case involving Andhra Pradesh based M/s PCH Group of Companies and others.
The said group companies had received bank loans and had allegedly diverted them through shell companies with the help of Chartered Accountants (CAs) and entry-operators in Mumbai and Hyderabad and had received back the said money in the PCH group companies for the purpose of showing a false rosy financial health of the companies, for availing further loans in a cyclical manner. The total loan fraud committed using the said modus operandi has caused a loss of Rs 747 crore to the banks, agency officials claimed.
The ED has provisionally attached 11 properties located in Hyderabad and Bangalore, having book value of Rs 6.18 crore in the loan fraud case by Balvinder Singh and his M/s PCH Group of Companies and others. Singh was arrested by the ED in February this year.
ED had initiated a money-laundering investigation on the basis of an FIR registered by the CBI, EOW, Chennai in 2017. It was alleged in the CBI charge sheet that PCH Agencies Pvt Ltd, PCH Lifestyle Pvt Ltd, Balvinder Singh, and others had caused wrongful loss to the Punjab and Sind Bank in Chennai to the tune of Rs 22.15 crore by availing credit facilities from the bank by submitting fabricated documents to show good turnover and illegally diverting the loan funds. Subsequently, two more FIRs were registered by the CBI against the PCH companies for committing more loan frauds.
"Investigation by the ED revealed that the PCH group companies had availed loans from the various public sector and private banks and failed to repay the said loans. The amounts received as loan were diverted through shell companies with the help of CAs and entry-operators in Hyderabad and Mumbai. Loan funds were diverted to more than 77 bogus shell companies without any supply of goods. Some of the entry-operators from Mumbai involved in the case are on our radar," said an agency officials.
