Charge slips ED bizmen, bank officials in loan fraud case

Charge slips ED bizmen, bank officials in loan fraud case

New Delhi: The Directorate of Law Enforcement (ED) said on Saturday that it had filed a complaint for prosecution (charge sheet) under the provisions of the Prevention of Money Laundering Act (PMLA) against Luxmi Auto Industries and its partners Satish Kumar Gupta and Parminder Singh, and officials from the Central Bank of India.

The ED accused Central Bank of India officials Sharwan Kumar Singhal, then deputy director, Avdhesh Kumar Gupta, then branch manager, of causing an unjustified loss to the bank.

The indictment was filed before the District and Sessions Judge of Dehradun Court. The court after reviewing the indictment took notice of the case and posted it for the next court date.

The ED initiated a money laundering investigation based on the FIR and the indictment filed by the CBI, against the accused under various sections of the IPC.

The ED learned during the investigation that the defendants, in collusion with bank officials, were granted a loan of Rs 1.71 crore to establish a nut and bolt manufacturing unit in the name and style of Luxmi Auto Industries based on falsified documents. The loan which the accused took advantage of was not used for the intended purpose. Thus, by resorting to conspiracy and cheating, the defendants caused injury to the bank and undue gain to themselves.

The total loan used fraudulently was Rs 1.71 crore and after a money laundering investigation was initiated, the accused made a one off settlement of Rs 1.38 crore.

“As a result, the remaining proceeds of crime of Rs 33 lakh have been seized in accordance with the provisions of the PMLA,” the ED official said.

Further investigation into the matter is ongoing.

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