ED attaches assets worth ₹4.9 crore in ₹50 crore bank fraud case

The alleged mastermind was an employee of the bank.   | Photo Credit: File Photo

Enforcement Directorate officials on Wednesday provisionally attached assets worth ₹4.98 crore in connection with its probe into the Syndicate Bank fraud case.

The fraud dates back to November 2019 when the police arrested bank employee and alleged mastermind, Vijay Akash, and two of his relatives for allegedly diverting ₹50 crore belonging to the Karnataka State Agricultural Marketing Board (KSAMB), which was transferred to the bank as a fixed deposit.

The Central agency said it took up the probe based on an FIR filed by the Commercial Street police against Akash, Mohamed Musthafa, M.D. Jairam (then Assistant Branch Manager of Syndicate Bank, Uttarahalli Branch Bengaluru), and others.

The investigation revealed that Akash along with other accused opened a fake current account in Syndicate Bank in the name of KSAMB. It was operated by Musthafa, who impersonated the account officer of KSAMB, based on fabricated documents such as board resolution, ID card, and the KSAMB letterhead. The accused, using fraudulent means, succeeded in transferring ₹50 crore to the fake current account, ED said in a release.

After the money was transferred to the account, Musthafa with the help of Jairam and others subsequently transferred ₹47,16,62,500 into various bank accounts belonging entities, persons etc..

“The bank accounts of each of those entities/persons were used to withdraw money in the form of cash and to buy jewellery and land by the accused and their accomplices. Accordingly, identified assets in the form of the balances in the bank accounts used for money laundering, jewellery and land to the tune of ₹4.98 crore in the form of movable and immovable properties have been provisionally attached under the Prevention of the Money Laundering Act. Further investigation is under progress,” said ED.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 26, 2021 6:13:17 AM |

Next Story