Mumbai, Feb 15 The Enforcement Directorate's (ED) zonal office in the city conducted search operations at multiple locations linked to One World Creations Private Limited (OCPL) over alleged bank fraud, under the provisions of the Prevention of Money Laundering Act (PMAL) 2002.
The central agency conducted searches at the company’s eight premises in the city for money laundering and also seized many incriminating documents, showing how the firm used embezzled funds to acquire immovable properties.
“The search operation led to the seizure of various incriminating evidence related to the purchase of immovable properties that are acquired out of Proceeds of Crime (POC) by using a complex web of dummy companies, partnerships firms, sole proprietary concerns in the names of accused individuals and also in the names of dummy/fictitious entities,” the agency said in a statement.
The Central agency had begun a probe into the case, based on an FIR registered by the CBI against M/s One World Creations Private Limited, Urvil Jani and others.
The complaint was lodged by UCO Bank, which accused the firm and its directors of defrauding the consortium of banks to the tune of Rs 93 crore.
“M/s OCPL and its Directors hatched a criminal conspiracy to defraud the banks by inflating turnovers in the shell entities through circular trading which resulted in wrongful gain to themselves by diverting loan funds,” the agency said in the statement.
According to the ED, the investigation found that the promoters of M/s OCPL resorted to voluminous circular transactions amongst shell entities for the purpose of layering of funds which were then utilised to purchase immovable assets.
In another instance of crackdown against bank fraud, the central agency also attached multiple immovable properties, valued at Rs 1.69 crore, in Jalgaon and Nashik districts of Maharashtra on Saturday.
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