ED provisionally attaches properties worth Rs 175.29 crore in bank fraud case

The Enforcement Directorate (ED) has provisionally attached 124 immovable properties worth Rs 175.29 crore of Prakash Vjya Private Limited and other associate compes under PMLA, 2002, in connection with a bank fraud case.

"The attached properties consist of properties and business establishments in the name of Prakash Vjya Private Limited and other associate compes. Among these 124 properties, 10 are located in Kolkata amounting to Rs 67.19 crore, three in Jalpaiguri amounting to Rs 98.70 Crore and 111 in Chhattisgarh amounting to Rs 9.40 crores," the ED said in a statement on Monday.

The economic offences watchdog said that these properties were traced after unfolding the layered transactions during a money-laundering investigation.

"On the basis of charge-sheet filed by CBI, BS&FC, Kolkata against Prakash Vjya Private Limited its director Mannoj Kumar Jain and others for defrauding Central Bank of India of Rs 234.57 crore investigation under PMLA was initiated," the ED said.

"The investigation revealed that Letter of Credit (LC) facility got sanctioned by accused Jain and the same was misused as LCs were issued without any underlying transactions by using fictitious and shell compes and without any real business or trade," it added.

The LCs were discounted by Jain through fictitious beneficiary compes and funds received back by him by round-tripping through his shell compes.

The ED said that these funds were used for personal purpose and for settling other liabilities through kite flying operations, and added that after availing credit facilities from bank, the accused started acquiring immovable landed properties.

"The purchase price of these properties were highly undervalued and balance amount were paid in cash. These cash amounts were illegally generated out of defrauded amount from the banks. Some of these properties were then offered as collateral securities to the bank for enhancing the credit limit," ED said.

( With inputs from ANI )

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