The Enforcement Directorate (ED) has made a significant breakthrough in a money laundering investigation, seizing assets valued at Rs 20.11 crore from a Mumbai-based company. The agency revealed these developments.
The operation, which spanned Monday and Tuesday, targeted various locations associated with Max Flex Imaging and System, a company controlled by Hitesh R Jobalia and Nimesh N Shah.
The ED’s efforts resulted in the confiscation of assets comprising stocks of Flex, Vinyl, and other items valued at Rs 12 crore, Fixed Deposit Receipts (FDRs) amounting to Rs 1.25 crore, demat accounts holding a balance of Rs 6.30 crore, foreign currency, cash, gold jewelry, and silver bars, with a combined total of Rs 20.11 crore, as per the agency’s statement.
The roots of this investigation trace back to the Central Bureau of Investigation (CBI), which had initiated action against the company in connection with an alleged loss of Rs 464.41 crore incurred by the State Bank of India-led consortium.
In response to this alleged wrongdoing, the Enforcement Directorate launched its money laundering probe into the company.
The ED’s investigation unearthed a scheme in which the company, along with other implicated individuals, allegedly conspired to defraud the State Bank of India consortium by obtaining loans through fraudulent means. This involved the submission of inflated stock statements and balance sheets by the company.
The agency’s statement added, “The promoters of the company diverted and utilized the funds received from banks for purchasing various properties and diverted the same to various firms/companies incorporated in the name of the employees/ex-employee/relatives of the said company and its directors.”