Bank loan

Bank loan fraud: ED attaches Rs 26-cr assets of Gujarat company, promoters

The attached assets include residential and commercial land, and their total value is Rs 26.25 crore.

The Law Enforcement (ED) Directorate said on Monday that it had seized assets worth more than Rs 26 crore from a Vodadara-based company in a money laundering investigation linked to an alleged bank loan fraud of around Rs 2,654 crore.

The properties provisionally seized under the Prevention of Money Laundering Act (PMLA) belong to Diamond Power Infrastructure Limited (DPIL) and its former directors, developers and their families.

The attached assets include residential and commercial land, and their total value is Rs 26.25 crore.

This is a second such seizure order by the ED against these defendants after an action in August 2018 where properties worth Rs 1,112.72 crore were seized.

The DPIL company, the ED said in a statement, had received term loans, working capital loans, external commercial loans and non-convertible debentures from a consortium of 19 banks and institutions.

DPIL used “paper transactions with shell companies and related entities to avail higher credit facilities from banks and misappropriated the funds, which ultimately resulted in a loss of Rs 2,654.4 crore for the consortium of 19 banks led by Bank of India”.

The ED brought money laundering charges against the defendant after investigating a 2018 FIR CBI against them.

He (ED) then filed an indictment in this case on December 26, 2018, which is “pending” in a PMLA Special Court in Ahmedabad, Gujarat.

Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest Biz news and updates.