Enforcement Directorate Issues Provisional Attachment Order in Sharon Bio Medicine Fraud Investigation

Synopsis

The Enforcement Directorate (ED) has issued a Provisional Attachment Order for assets worth Rs 9.39 crore in connection with the Sharon Bio Medicine fraud case, revealing a significant bank fraud investigation involving inflated records and misappropriated funds.

Key Takeaways

ED's Provisional Attachment Order for Rs 9.39 crore issued.
Investigation linked to M/s Sharon Bio Medicine Limited.
Fraud resulted in a loss of approximately Rs 286 crore to banks.
Former directors involved in manipulating financial records.
Ongoing investigation with further legal proceedings expected.

Mumbai, March 25 (NationPress) The Mumbai Zonal Office of the Enforcement Directorate (ED) has issued a Provisional Attachment Order for immovable assets valued at around Rs 9.39 crore under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing probe into a bank fraud case involving M/s Sharon Bio Medicine Limited (SBML) and others.

The agency's statement released on Tuesday mentioned that the provisionally attached assets comprise flats situated in Pune, Maharashtra.

This investigation is a result of FIRs filed by the Central Bureau of Investigation (CBI) and the Anti-Corruption Bureau (ACB), Mumbai, against M/s Sharon Bio Medicine Limited and its directors under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The agency disclosed that the fraud led to a loss of approximately Rs 286 crore to multiple banks.

The inquiry revealed that former directors Mohan Kala, Savita Gowda, and Lalit Misra of M/s Sharon Bio Medicine Ltd conspired to inflate stock statements, balance sheets, and other records through manipulated sales and purchases, thereby creating fictitious transactions to secure substantial loans from banks, as stated by the agency.

It was noted that the fraudulent operations included the establishment of shell companies and firms, where employees of SBML and relatives of the directors were listed as directors or shareholders. Funds from banks were funneled to these entities, where they were misappropriated for personal expenditures and the acquisition of properties in the names of the directors and their affiliates, according to the agency.

Previously, the ED executed a search operation on October 23, 2024, resulting in the seizure and freezing of movable assets worth approximately Rs 16.42 crore, alongside incriminating documents and digital devices. A provisional attachment order was also issued on January 24, 2025, for assets valued at around Rs 79.78 crore. To date, the total attachment and seizure in this case has reached approximately Rs 105.59 crore. The agency indicated that the investigation is ongoing, with further legal actions anticipated.