What Led to the ED Attaching Properties Worth Rs 2.08 Crore in Madhya Pradesh's Loan Fraud Case?
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Synopsis
The Enforcement Directorate has taken significant action against a major loan fraud case in Madhya Pradesh, provisionally attaching properties worth Rs 2.08 crore linked to the prime accused. With ongoing investigations, the ED aims to uncover the full extent of this financial crime affecting government employment schemes.
Key Takeaways
- ED's provisional attachment of properties worth Rs 2.08 crore.
- Involvement of Manoj Parmar and associates in the fraud.
- Fraudulent loans sanctioned under two government schemes.
- Investigation reveals 18 bogus applicants involved.
- Ongoing efforts to trace remaining proceeds of crime.
Bhopal, Nov 29 (NationPress) The Enforcement Directorate (ED), Bhopal Zonal Office, has provisionally seized 12 immovable properties valued at around Rs 2.08 crore in Ashta town of Sehore district in Madhya Pradesh. These properties belong to the key suspect Manoj Parmar and his accomplices in a significant bank loan fraud case linked to government self-employment initiatives.
This action was taken under the Prevention of Money Laundering Act (PMLA), in connection with the case involving Manoj Parmar, Mark Pius Karari (the former Branch Manager at Punjab National Bank, Ashta branch), and additional individuals.
The ED launched an investigation into money laundering following an FIR and subsequent charge-sheet filed by the Central Bureau of Investigation (CBI), Bhopal, citing violations such as cheating, forgery, criminal conspiracy, and corruption.
Investigations unveiled that in 2016, Manoj Parmar, in collusion with the then PNB Branch Manager, fraudulently secured 18 loans amounting to Rs 6.20 crore (with Rs 6.01 crore actually disbursed) under two prominent government schemes: the Pradhan Mantri Employment Generation Programme (PMEGP) and Chief Minister Yuva Udyami Yojana (CMYUY) of Madhya Pradesh.
The loans were issued under the names of 18 fictitious or bogus applicants, utilizing entirely forged documents, fabricated quotes, and fake project proposals.
The bank's regulations were blatantly disregarded; necessary second-level approvals were ignored, loans exceeding the Branch Manager's authority were approved, and no field verification was performed during the disbursement.
Subsequent audits by the bank indicated that not a single business was established.
Many alleged borrowers, when approached, denied having applied for or received any loans.
The total loan amount was swiftly redirected into accounts of firms and entities controlled by Manoj Parmar and his close associates.
The funds were then systematically laundered through multiple linked businesses, withdrawn in cash, and partly utilized to acquire immovable properties under the names of Parmar and his proxies — the very properties now seized by the ED.
The agency has characterized this operation as a blatant case of misappropriation and laundering of government-funded public money intended for youth employment. Further investigations are ongoing to trace the remaining criminal proceeds and identify additional assets.
Point of View
We stand firmly committed to uncovering the truth behind financial misconduct. The ED's action in this significant loan fraud case serves as a reminder of the importance of accountability and transparency, especially when public funds are involved. We will continue to provide in-depth coverage and analysis of this developing story.
NationPress
29/11/2025
Frequently Asked Questions
What was the basis for the ED's action?
The ED's action was based on a case registered under the Prevention of Money Laundering Act (PMLA), following an FIR and charge-sheet filed by the CBI regarding serious offenses like cheating and forgery.
How much money was involved in the fraud?
The fraud involved loans totaling Rs 6.20 crore, with Rs 6.01 crore actually disbursed under government self-employment schemes.
What were the government schemes linked to this fraud?
The fraudulent loans were sanctioned under the Pradhan Mantri Employment Generation Programme (PMEGP) and the Chief Minister Yuva Udyami Yojana (CMYUY).
What actions are being taken by the ED now?
The ED is currently investigating to trace any remaining proceeds of crime and to identify additional assets linked to the accused.
What does this case reveal about financial misconduct?
This case highlights significant lapses in financial governance and the misuse of public funds intended for youth employment.
