Bhopal, April 15 The Directorate of Enforcement (ED), Bhopal Zonal Office, has filed a prosecution complaint before a special court under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a bank fraud case involving M/s Excel Vehicles Pvt. Ltd. and its directors, officials said on Wednesday.
According to the ED, the complaint was filed on April 13 before the Special Court (PMLA) in Bhopal. Following the issuance of notice, the accused persons appeared before the court, and copies of the prosecution complaint and relied-upon documents were served on them.
The ED initiated its investigation based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI), Anti-Corruption Branch (ACB), Bhopal. The FIR alleged that the company and its directors defrauded Bank of India, causing a wrongful loss of around Rs 42 crore. The CBI had earlier filed a chargesheet in the case before the Special Judicial Magistrate (CBI Cases) in Indore on December 20, 2022.
As part of the money laundering probe, the ED conducted search operations on November 6, 2024, which resulted in the seizure of cash and ornaments worth Rs 1.09 crore.
Investigations revealed that the company had availed credit facilities of about Rs 42 crore from Bank of India by allegedly misrepresenting collateral securities. It was also found that the company concealed the prior charge on one of the mortgaged properties with Kotak Mahindra Bank.
Further findings indicated that a significant portion of the loan funds was diverted and siphoned off through the company’s cash credit accounts to various sister concerns and related entities without any legitimate business purpose. The ED said this pointed to layering and diversion of funds in violation of PMLA provisions.
Earlier, the ED had provisionally attached two immovable properties valued at approximately Rs 12.62 crore under the PMLA. These include an agricultural land parcel and a commercial plot located in Kolar tehsil of Bhopal district in Madhya Pradesh.
The agency said that further investigation in the matter is underway.
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