ED arrests Odisha-based firm's MD in fake bank guarantee scam

Bhubaneswar, Aug 2 Following day-long multi-city searches, the Enforcement Directorate (ED) arrested the Managing Director (MD) of an Odisha-based company in connection with a fake bank guarantee scam, an official said on Saturday.

Partha Sarathi Biswal, Managing Director of M/s Biswal Tradelink Private Limited (BTPL), was arrested on Friday after searches in Bhubaneswar and Kolkata at locations linked to the Odisha-based company, said an official statement.

After the arrest, Biswal was sent to ED custody, it added.

As per the ED, the central agency recorded an Enforcement Case Information Report (ECIR) and initiated investigation into the fake bank guarantee scam on the basis of a case registered by Delhi's Economic Offences Wing (EOW), on November 11, 2024.

The case was registered against BTPL, its directors and others, for providing fake bank guarantee, which was submitted to Solar Energy Corporation of India Limited (SECI).

Investigation by the ED revealed that BTPL fraudulently arranged and submitted fake bank guarantees of Rs 68.2 crore along with forged SBI endorsements and fabricated confirmations for a SECI tender.

For providing this bank guarantee, Rs 5.40 crore were received by BTPL from Reliance Power, the ED statement said.

Evidence confirms the use of fake documents in the name of certain banks and fake email IDs in the name of SBI, the probe agency said.

The probe reveals BTPL, a small company incorporated in 2019, maintained multiple undisclosed bank accounts and carried out transactions disproportionate to its declared turnover.

"Many violations of the Companies Act are found. No statutory records are found at registered address -- such as books of accounts, shareholders' registers. Dummy directors are found to be used just to sign the documents," the ED statement said.

At least seven undisclosed bank accounts of the company were found and proceeds of crime of crores of rupees have been traced to these accounts, it said.

Sources said the central agency, during investigations, found that the company, its directors, and associates were engaged in the issuance of fake bank guarantees against a commission of eight per cent.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor