The Enforcement Directorate (ED) has attached properties worth ₹175.29 crore in connection with a bank fraud case against Prakash Vanijya Private Limited and others.
“In all, 124 immovable properties have been attached under the Prevention of Money Laundering Act. They include parcels of land, buildings and business establishments in the name of Prakash Vanijya Private Limited and associated companies,” said an official.
Among the attached assets, 10 are located in Kolkata, three in West Bengal’s Jalpaiguri and 111 in Chhattisgarh.
The ED identified these properties following investigation into the financial dealings of the company and other accused persons.
The probe is based on a charge sheet filed by the CBI against Prakash Vanijya Private Limited, its director Manoj Kumar Jain and others for allegedly cheating the Central Bank of India of ₹234.57 crore.
It is alleged that Mr. Jain got issued Letters of Credit (LC) without any underlying genuine business transactions, by using shell companies.
The LCs so opened were discounted by Mr. Jain through fictitious beneficiary companies and funds were round-tripped to him via his shell companies, alleges the ED.
The funds were used for personal purposes and for settling other liabilities. After availing themselves of credit facilities from the bank, the accused had started acquiring immovable properties.
The purchasing prices of these properties were highly undervalued and the balance amounts were paid in cash. These cash amounts were illegally generated out of the defrauded amount. Some of these properties were then offered as collateral securities to the bank for enhancing the credit limit, the ED said.
