Bank of Baroda, leading a consortium of banks, filed a complaint with the CBI alleging that the accused individuals defrauded the banks of Rs 975.08 crore.
The Enforcement Directorate (ED) in Mumbai conducted searches at 12 locations linked to Mandhana Industries Ltd in connection with a money laundering case related to the alleged Rs 975 crore bank loan fraud.
During these searches, the ED froze shares and securities valued at Rs 5 crore, several bank accounts, lockers, and also seized luxury vehicles and expensive watches, as stated by the agency on Thursday.
The ED’s money laundering investigation is based on the FIR registered by the CBI, Mumbai, against Mandhana Industries Ltd (now GB Global Ltd) and its directors Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana, and others.
According to the CBI’s case, Mandhana Industries Ltd and its directors allegedly conspired to cause financial losses to banks and illicitly benefit themselves by diverting loan funds through fraudulent transactions and circular trading. The CBI has not yet filed a chargesheet in this case.
The ED’s investigation uncovered that the directors of Mandhana Industries Ltd created various fictitious entities in the names of company employees to layer funds through the bank accounts of these entities.
Suspicious third-party transactions were conducted to divert funds to the accounts of promoters, directors, and their family members. Bogus purchases were recorded against payments made to different entities providing accommodation entries, according to the ED.
During the search operation, over 140 bank accounts, five lockers, and shares and securities worth Rs 5 crore were discovered and frozen.
Additionally, three high-end cars, including a Lexus and a Mercedes Benz, multiple expensive watches, including Rolex and Hublot brands, numerous digital devices, and several incriminating documents were seized, the agency reported.
The searches also revealed crucial incriminating documents, including numerous property documents, the agency added.