ED unearths Immovable Properties worth Rs.100 Crore and seized Cash worth Rs.14.5 lakhs in Search related to Bank Fraud Case

The Directorate of Enforcement (ED) has carried out search operations on 05.06.2023 under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) at 07 locations of Bengaluru/ Davangere (Karnataka) belonging to M/s Bharath Infra Exports and Imports Ltd and its related entities in a Bank Fraud Case.

M/s. Bharath Infra Exports and Imports Ltd obtained financial facilities from the State Bank of India, Bengaluru City branch, Bengaluru, in the form of cash credit, EPC/FBD, non-fund based working capital, and letters of credit (inland and regular). The mentioned entity’s account was categorised as a Non-Performing Asset (NPA) on 17.01.2017 owing to non-payment of bank dues, with a total outstanding of 113.38 Crore.

The investigations done by ED revealed that the promoters/directors of M/s. Bharath Infra Exports and Imports Ltd. misappropriated the Credit facility availed from the State Bank of India by wrongful diversion of funds/loans to related parties, submitted forged/fabricated invoices/documents to the bank and also written off sales booked without complying with contractual obligations.

The investigation further revealed that the accused syphoned off Rs. 101.18 Crore with respect to 10 LCs issued to M/s. Aradhya Wire Ropes Pvt. Ltd, which were devolved and credited into the bank account of M/s. Aradhya Wire Ropes Pvt. Ltd and then routed through the bank accounts of various other entities. Payments were made in several cases to a transport contractor and agents who gave false vehicle data and invoices to M/s Bharat Infra Exports and Imports Pvt Ltd and M/s Aradhaya Wire Ropes Pvt Ltd without any real material movement at the site.

During the search operation immovable properties worth Rs. 100 Crore (approx.) were unearthed and cash to the tune of Rs. 14.5 lakhs has been seized. In addition to this, incriminating documents, digital devices and bank accounts of the said entities were also freezed and seized.

Further investigation under PMLA is in progress.