Mumbai, March 28 The Enforcement Directorate (ED), Mumbai Zonal Office, on Friday said that Vijay R. Gupta, promoter and Director of Vindhyavasini Group of Companies, who was arrested on March 26, had created 40 shell companies to divert funds.
Mumbai-based businessman, Vijay R. Gupta, was arrested under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a fraud involving the State Bank of India (SBI).
The Special PMLA Court has remanded him to ED custody for seven days, until April 2.
The ED initiated its investigation based on FIRs registered by the CBI and Mumbai’s Economic Offences Wing (EOW) against six Vindhyavasini Group companies and their promoters, Vijay R. Gupta and Ajay R. Gupta.
According to the ED, the companies allegedly secured multiple credit facilities from SBI using forged and fabricated documents, leading to non-performing assets (NPAs) worth Rs 764.44 crore in 2013, ED said.
The ED probe revealed that Gupta availed term loans and cash credit facilities in the name of four Vindhyavasini Group companies to purchase steel rolling mills in Silvassa and Maharashtra.
Additionally, he took a loan in the name of M/s Rajput Retail Ltd. for the construction of a mall and the purchase of commercial properties. These loans were obtained using forged and inflated Memorandums of Understanding (MOUs) to avoid investing promoter contributions.
The ED also found that Gupta had formed over 40 shell entities to siphon off and divert loan proceeds from the group’s accounts.
It has also been revealed by the ED during the investigation that Part of the loan proceeds has been utilized by him for purchasing immovable properties in Mumbai and surrounding areas.
Further investigation in the matter is underway.
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