Panaji, May 8 The ED seized Rs 67.50 lakh in cash, incriminating documents, including property sale deeds, and digital devices during searches at six premises in Goa in connection with an over Rs 17 crore bank loan fraud, an official said on Friday.
The Directorate of Enforcement (ED), Panaji Zonal Office, conducted search operations at the premises under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a bank fraud case involving Crown Mineral Trading Corporation (CMTC) and its partners, the federal probe agency said in a statement.
During the search operations, cash amounting to Rs. 67.50 Lakh, incriminating documents including property sale deeds, and digital devices were seized, it said.
The ED initiated a money laundering investigation based on an FIR registered by the CBI (ACB), Goa, against the partners of CMTC and others.
The FIR was registered pursuant to a complaint filed by Canara Bank, alleging that the partners of CMTC, a firm purportedly engaged in the trading of raw iron ore, fraudulently obtained a credit facility of Rs 7 crore from Canara Bank, Madgaon Branch, the statement said.
Due to default in repayment, the loan account was classified as a Non-Performing Asset (NPA) with an outstanding of Rs 6.19 crore, it said.
The ED investigation revealed that CMTC had no actual business, and the loans taken from Canara Bank were diverted to the personal bank accounts of its partners. Forged yearly stock statements were submitted to Canara Bank to ensure the renewal and continuation of the cash credit limit.
Investigation revealed that the properties mortgaged with Canara Bank were simultaneously kept mortgaged with multiple other banks, including Madgaum Urban Co-operative Bank, Central Bank of India, Indian Bank, Karnataka Bank, and Bank of Baroda, to fraudulently obtain additional loans of Rs 10.02 crore, the ED said.
The accused, in furtherance of a criminal conspiracy, executed multiple sale deeds for the same properties and furnished different sets of these deeds to different banks to secure credit facilities, thereby concealing, disguising, and projecting the Proceeds of Crime as untainted, it said.
Earlier, the ED had provisionally attached properties valued at Rs 2.86 crore belonging to the partners of CMTC, under the PMLA.
--IANS
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