ED attaches assets worth ₹52.21 cr. in bank fraud case

The assets of Vikas WSP Limited (Rajasthan) and its directors were attached in a fraud case involving State Bank of Bikaner and Jaipur (now State Bank of India).

The Enforcement Directorate has attached assets worth ₹52.21 crore of Vikas WSP Limited (Rajasthan) and its directors in a bank fraud case.

The properties include 27 plots of agricultural and industrial land, besides the plant and machinery located at Sriganganagar and Bikaner.

The ED probe is based on an FIR registered, and chargesheet filed, by the Central Bureau of Investigation against the company and its directors, B.D. Agarwal and Bimla Devi, along with officials of the State Bank of Bikaner and Jaipur (now State Bank of India).

According to the ED, Vikas WSP had availed itself of Export Packing Credit (EPC) facility from the bank on forged Letters of Credit.

It submitted fake Bill of Lading (proof of export) to substantiate its claim before the bank, which later extended credit to the company by negotiating 245 export bills against fake Letters of Credit under the Foreign Banking Negotiating Letter of Credit scheme.

The bank also bought 36 foreign bills under the scheme and 70 exports bill cancelled by the port authorities for various reasons, said the agency.

As it turned out, the company took benefit of the scheme on consignments of goods that were either not manufactured during the relevant time period or were still lying in the factory.

The funds so raised were diverted and invested in immovable properties, as alleged.

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Printable version | Jul 11, 2020 8:11:25 PM |

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