ED facilitates return of assets worth ₹185.13 crore to SBI-led consortium

The agency found that the accused company Surya Pharmaceuticals and its directors/promoters Rajiv Goyal and Alka Goyal had caused wrongful loss worth ₹828.50 crore to the consortium through illegal means

Published - October 30, 2024 09:08 pm IST - NEW DELHI

The Enforcement Directorate (ED) has facilitated the return of properties worth about ₹185.13 crore from Surya Pharmaceuticals Limited to a State Bank of India-led consortium of lenders via the official liquidator.

The agency on Wednesday (IOctober 30, 2024) said as part of its ongoing efforts to restore the proceeds of crime to the rightful victims, it held meetings with the claimants involved. “To safeguard the interests of the nationalised banks, the Directorate provided its no objection to the Special Court for the restitution of the properties,” it said.

Following the clearance under the Prevention of Money Laundering Act regulations, the court issued a restitution order on October 25 allowing the attached properties to be returned to the consortium of lending banks. The provision has been given under Section 8(7) of Act.

CBI FIRs

In this case, the ED had initiated investigations against Surya Pharmaceuticals on the basis of First Information Reports registered by the Central Bureau of Investigation. The agency found that the accused company and its directors/promoters Rajiv Goyal and Alka Goyal had caused wrongful loss worth ₹828.50 crore to the consortium through illegal means.

“The loan money was obtained by using fabricated documents such as invoices, transport details, lorry receipts, etc. for issuance of Inland Letter of Credits from the bank and was subsequently layered and siphoned off...using a web of bank accounts of group companies and shell entities...the defrauding company also used forged bill of lading, import invoices, and documents of shipping line for issuance of Foreign Letter of Credits from the bank,” said the agency.

Surya Pharmaceuticals allegedly received money in its bank accounts through the round-tripping of funds from the fraudulently issued Inland and Foreign Letters of Credit. “After committing these offenses, Rajiv Goyal and Alka Goyal fled India and were declared proclaimed offenders by the court (Chandigarh)...in an order dated July 10, 2017,” it said.

Based on the findings, the ED issued a provisional attachment order on October 14, 2022, seizing movable and immovable assets valued at ₹185.13 crore. The attached assets included a building and superstructure on 80 Kanals of land, along with plant and machinery, furniture, and fixtures located in Samba, Jammu. On April 4, 2024, the ED filed a prosecution complaint.

The ED subsequently held meetings with the lending banks and the official liquidator appointed by the National Company Law Tribunal, assisting them in filing a restitution application before the Special Court in Chandigarh. Prioritising the interests of the nationalised banks involved, the Directorate provided its no-objection for the restitution of the properties.

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