Rs 220 Cr Bank Fraud: ED Freezes Assets in Mumbai, Dehradun
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Synopsis
The Enforcement Directorate has provisionally attached assets worth Rs 79.78 crore linked to a Rs 220 crore bank fraud involving Sharon Bio Medicine Limited. This action is part of an ongoing investigation that has now resulted in total attachments of Rs 96.20 crore.
Key Takeaways
- Enforcement Directorate froze assets worth Rs 79.78 crore.
- Ongoing probe into Rs 220 crore bank fraud.
- Sharon Bio Medicine Limited is under investigation.
- Seized properties located in Maharashtra and Uttarakhand.
- Total attachments in the case amount to Rs 96.20 crore.
New Delhi, Jan 27 (NationPress) The Enforcement Directorate (ED), Mumbai, has provisionally immobilized assets valued at Rs 79.78 crore in connection with a Rs 220 crore bank fraud involving Sharon Bio Medicine Limited and other parties, as disclosed by an official on Monday.
The seized assets comprise flats, plots, hotel properties, and agricultural land situated in Navi Mumbai, Mumbai, Satara, Raigad in Maharashtra, along with locations in Dehradun, Haridwar, and Pauri Garhwal in Uttarakhand, as stated by the official.
These recent seizures, executed under the Prevention of Money Laundering Act (PMLA), 2002 on January 24, are part of an ongoing investigation into the bank fraud case linked to Sharon Bio Medicine Limited and others, bringing the total value of attachments and seizures in this case to Rs 96.20 crore, according to the statement.
The company had previously undergone ED raids in October of the previous year for allegedly utilizing forged documents and fictitious contracts, leading to a loss of Rs 220 crore to banks.
The ED's statement revealed that the pharmaceutical firm, involved in the production of active pharmaceutical ingredients, allegedly secured credit facilities from banks before laundering the funds.
The investigation was initiated based on a case filed by the Central Bureau of Investigation (CBI) and the Anti Corruption Bureau (ACB), Mumbai, against Sharon Bio Medicine Limited (SBML) and others under various provisions of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988 for defrauding banks with counterfeit documents.
During the raid conducted on October 23, 2024, movable assets, including bank funds and Demat accounts valued at Rs 14.53 crore, were either seized or frozen, alongside numerous other incriminating documents and digital devices, as well as documents related to immovable properties.
Further investigations and tracing of bank funds uncovered that a network of shell companies was established, with which SBML initially executed fictitious sales and purchases to artificially inflate their turnover.
The firm provided these fictitious contracts and forged documents to banks to obtain or enhance their credit facilities. After securing loans, funds were siphoned off through multiple layers of shell entities created in the names of SBML employees and relatives of key individuals within SBML, which were subsequently diverted for asset creation, according to the ED.
