ED Files Complaints Against Firm Partners & Bank Officials Involved in Fraudulent Availment of Loan of Rs 1.71 crore

The Enforcement Directorate (ED) has filed a Prosecution Complaint under the Prevention of Money Laundering Act, 2002 (PMLA) against M/s. Luxmi Auto Industries and its Partners Satish Kumar Gupta and Parminder Singh, as well as Bank Officials namely Sharwan Kumar Singhal, then Assistant Manager, and Avdhesh Kumar Gupta, then Branch Manager, Central Bank of India, Roorkee, in the Hon’ble District & Sessions Judge, On the 30th of March, 2022, the Hon’ble Court took cognizance of the matter.

On the basis of an FIR and charge sheet filed by the CBI, EOU-1, New Delhi under different sections of the IPC, 1860 against Parminder Singh and others, the Enforcement Directorate launched a money-laundering probe.

According to the ED investigation, the accused persons obtained a loan of Rs. 1.71 crore in collusion with bank officials for the purpose of establishing a manufacturing unit of nuts and bolts in the name and style of M/s. Luxmi Auto Industries on the basis of forged documents and the loan was not used for the stated purpose. Thus, the accused parties caused damage to the Bank and unlawful benefit to themselves by resorting to conspiracy and deceit.

The total loan fraudulently obtained was Rs. 1.71 crore, and the accused paid a one-time settlement of Rs. 1.38 crore once the money-laundering investigation was launched. As a result, the remaining proceeds of crime of Rs. 33 lakh were attached in accordance with the provisions of the PMLA, 2002.