Ed English news | Ed, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

The Enforcement Directorate (ED) on Tuesday attached the assets of Simbhaoli Sugars Ltd in Hapur in Uttar Pradesh worth Rs 109.80 crore for defrauding a bank under the provisions of Prevention of Money Laundering Act, 2002 (PMLA), an official statement read."The properties included land, buildings and plant and machinery of the company situated at Simbhaoli. The attachment was made under the money laundering act. after the probe agencies like CBI registered a case on the basis of an FIR against Simbhaoli Sugars Ltd and others for cheating and defrauding the Oriental Bank of Commerce on the pretext of financing sugarcane farmers," ED said.According to the FIR, the company was given a loan of 148.59 crores by the bank for providing assistance to 5762 farmers but the funds were diverted by the company for other purposes.ED conducted searches at the offices of the company situated at Noida and Simbhaoli resulting in recovery and seizure of incriminating documents.The investigation revealed that the company was facing a liquidity crunch and approached the bank for sanction of a loan under interest subvention scheme of RBI under a tie-up arrangement with 5762 farmers for financing them for pre and post-harvest assistance.The ED said the funds meant to be paid by the company to the farmers were not remitted to the accounts of the farmers. "There were serious irregularities in the KYC documents. The loan then turned NPA with Rs 98.7 crore (principal) outstanding and the bank filed a recovery suit before the debt recovery tribunal (DRT)," it said.During the investigation, the ED found that loan funds were diverted by the company by routing into other accounts and then using it towards."The company thus laundered the funds intended for assistance to the needy farmers, in utter violation of the terms and conditions and the intent of the loan," it said.It said that instead of settling the entire loan liability, the company again induced the Oriental Bank of Commerce to withdraw the application before the Debts Recovery Tribunal and grant a fresh corporate loan of Rs 110 crore on January 28, 2015 to clear the previous dues.The company again deliberately failed to repay the said corporate loan and at the time of the FIR, Rs 109.8 crore were outstanding, the ED said.The company had offered a One Time Settlement (OTS) amount of Rs 14.69 crore against the entire outstanding."This highlights an ingenious modus operandi of money laundering by taking huge loans from banks and later settling them at heavily discounted sums, thereby causing huge wrongful losses to lender banks," it said.Further investigation is under progress.( With inputs from ANI )

EdFOLLOW

Ed, Latest News

: The Enforcement Directorate (ED) on Wednesday told a Delhi court that industrialist Ratul Puri, Kamal Nath's nephew, was "incommunicable" for the last two days and people "fear" him. ...

The Enforcement Directorate on Monday said it has attached 174 immovable properties located in Tamil Nadu, Puducherry and Andhra Pradesh worth Rs 243.80 crore and shares and vehicles worth Rs 2.29 crore in connection with the gutkha scam in Tamil Nad ...

The Enforcement Directorate (ED) on Friday attached the assets worth Rs 3.10 crores of a private company under the Prevention of Money Laundering Act (PMLA) here. ...

The Enforcement Directorate (ED) on Friday said it has attached properties worth Rs 89 lakhs belonging to former Noida Authority engineer Yadav Singh and family in a disproportionate asset (DA) and money laundering case. ...

The Enforcement Directorate (ED) on Wednesday attached the assets worth Rs 15 crore of JKV Land and Infrastructures and its former managing director in Lucknow for cheating investors under the provisions of Prevention of Money Laundering Act, 2002 (P ...

Assets worth Rs 7.16 crore of Virkaran Awasty and Sai Chandrasekhar of Bush Foods Overseas Pvt. Ltd have been provisionally attached in a bank fraud case, the Enforcement Directorate (ED) said on Wednesday. ...

The Enforcement Directorate (ED) said on Wednesday that it has attached Rs 7.49 lakh lying in a bank account of Ritu Khaitan, wife of VVIP chopper scam case accused Gautam Khaitan, under the Prevention of Money Laundering Act (PMLA). ...

The Enforcement Directorate (ED) on Tuesday attached the assets of Simbhaoli Sugars Ltd in Hapur in Uttar Pradesh worth Rs 109.80 crore for defrauding a bank under the provisions of Prevention of Money Laundering Act, 2002 (PMLA), an official stateme ...