ED provisionally attached Movable and Immovable Property in Bank Fraud of Rs.804.49 Crore

The Directorate of Enforcement (ED) has provisionally attached movable and immovable assets worth Rs.17.70 Crore, held in the name of M/s ABC Cotspin Pvt. Ltd. and other related entities by PAO dated 10.06.2022.

The Enforcement Directorate had initiated investigations under Prevention of Money Laundering Act, 2002 (PMLA) against M/s ABC Cotspin Pvt. Ltd. and its director Mr. Ashish Sureshbhai Jobanputra and others, on the basis of the case registered by CBI, BS & FC, Mumbai against above accused and accomplices under Indian Penal Code (IPC) and Prevention of Corruption (PC) Act, wherein, it is alleged that M/s ABC Cotspin Pvt. Ltd., defrauded State Bank of India (SBI) and Bank Of Baroda (BoB) to the tune of Rs. 804.49 Crore. According to the ED investigation, the company was using the above-mentioned banks’ Bill Discounting services in exchange for prime bank Letters of Credit.

During the period 2014-15, the main accused, Mr. Ashish S Jobanputra, produced and signed bogus export paperwork and presented them to SBI and BoB without making any actual exports. Mr. Ashish Jobanputra was able to get these bogus export bills discounted from banks, resulting in a loss for the banks.

The Enforcement Directorate has now traced numerous properties held in the names of M/s ABC Cotspin Pvt. Ltd. and other linked entities/persons, as well as attached movable and immovable properties worth Rs.17.70 crore. The total amount of money attached in this case is Rs.31.20 crore.

More research is being carried out.