The Enforcement Directorate has attached assets worth over ₹414 crore of Lakshmi Energy & Foods Limited in connection with the money laundering probe into the National Spot Exchange Limited (NSEL) scam, in which 13,000 investors were cheated of ₹5,600 crore.
The agency had registered a case under the Prevention of Money Laundering Act, on the basis of an FIR lodged by the Economic Offences Wing in October 2013. It is alleged that the accused persons induced the investors to trade on the NSEL platform. They created documents like bogus warehouse receipts and falsified the accounts to deceive the investors.
“Of the ₹5,600 crore swindled by the accused persons, total liability of LOIL group of companies — consisting three defaulters: LOIL Health Foods Limited, LOIL Overseas Foods Limited and LOIL Continental Foods Limited — was ₹720.30 crore,” said an ED statement.
Fictitious sale
ED probe purportedly revealed that the three LOIL Group companies fraudulently obtained huge funds from NSEL by trading on the exchange platform against fictitious sale of their commodity, paddy.
“The said amount was further diverted to the accounts of Lakshmi Energy & Foods Limited and utilised for procurement of raw material, working capital and plant expansion of the company and to acquire real estate in the name of group companies & their promoters or directors. The funds received from NSEL were invested in Lakshmi Energy & Foods Limited by way of bank loan repayments and other expenses, projecting the same as untainted,” alleges the ED.
Based on the findings, the Directorate has attached the immovable properties worth ₹414.62 crore of the company.
