Enforcement Directorate (ED) officials have undertaken searches at 11 locations related to a Madhya Pradesh-based company and its directors accused of deceiving a consortium led by UCO Bank of Rs 109.87 crore. The searches occurred in Indore, Jaura, and Mandsaur in Madhya Pradesh, as well as Aloka in Maharashtra, targeting group entities of Narayan Niryat India Private Limited and the directors’ residences, operating under the provisions of the Prevention of Money Laundering Act, 2002.
The ED stated, “During the search, various incriminating documents, books of accounts, and details of immovable/movable properties were found and seized.” The initiation of the investigation was based on a First Information Report (FIR) lodged against the company and a charge sheet filed by the Central Bureau of Investigation (CBI), AC-IV, Vyapam, Bhopal, under multiple sections of the Indian Penal Code.
According to the ED’s findings, between 2011 and 2013, the company availed credit facilities of around Rs 110.50 crore, utilizing a Letter of Credit (LC) and Export Packing Credit (EPC) from a consortium of banks, including UCO Bank, Corporation Bank (now merged with Union Bank of India), and Punjab National Bank. However, the company failed to repay the loan of Rs 109.87 crore, diverting funds for unauthorized purposes and submitting fraudulent financial records to secure the bank loan.
The ED alleges that the company defrauded the banks by redirecting funds to various associated/sister concern companies without engaging in legitimate transactions. Additionally, a portion of the property mortgaged with the banks was purportedly sold to third parties without notifying the banks. As a result, the company is accused of knowingly participating in processes and activities linked to the proceeds of crime.