Ahmedabad, Feb 13 The Enforcement Directorate (ED) has filed a charge sheet against Hellious Tubealloys Private Limited (HTPL) and its directors in connection with an alleged bank fraud of Rs 28.54 crore involving the Bank of Baroda, the central agency said on Friday.
The complaint was filed by the Ahmedabad Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following an investigation initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI)'s Anti-Corruption Branch in Gandhinagar.
The FIR pertains to offences under Sections 120-B and 420 of the Indian Penal Code, 1860, and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
The case originated from a complaint lodged by the Deputy General Manager of Bank of Baroda's Ahmedabad Region against HTPL and its directors, Shantilal Sanghvi and Mahesh Sanghvi, for allegedly defrauding the bank.
According to the ED, its investigation revealed that HTPL had been sanctioned credit facilities amounting to Rs 29.67 crore by the bank.
Of this, nearly Rs 14 crore was allegedly diverted to a sister concern, SLS Stainless Private Limited, without any genuine business transactions.
The central probe agency also alleged that the company issued bogus Letter of Credits to avail loan funds and submitted falsified stock statements and books of accounts with dishonest intent.
Additionally, HTPL is accused of obtaining a bank guarantee of around Rs 4.50 crore and misusing the remaining loan amount towards term loan repayment, charges and taxes, resulting in a wrongful loss of Rs 28.54 crore to the bank.
The bank has recovered Rs 5.64 crore through auction of mortgaged assets and other recovery measures, the central agency had said.
As part of the probe, the ED conducted search operations at multiple locations and seized incriminating documents.
The CBI's Anti-Corruption Branch in Gandhinagar filed a charge sheet in the case on December 28, 2021.
Based on its findings, the ED issued a provisional attachment order for immovable properties valued at Rs 19.37 crore.
Further investigation is underway.
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