ED attaches assets worth Rs 31.83 cr in banks fraud case

New Delhi, Mar 5 (Agency) The Enforcement Directorate (ED) on Friday said that it has provisionally attached assets worth Rs 31.83 crore under prevention of Money Laundering Act, 2002 (PMLA) in a bank fraud case related to Shubhash Sharma and his group companies. The plant and machinery of the Ferro Alloys Unit of Chhattisgarh Steel and Power Ltd valuing Rs 29.65 crore has been provisionally attached along with a piece of land situated at Village Purena in Raipur valuing Rs 2.18 crore in the name of Saumya Prakashan Pvt Ltd, another shell company, the probe agency said in statement on Friday.

The ED’s move came after the registration of FIRs by Chhattisgarh Police against Hotel Sapphire Inn, Goodluck Petroleum Company Pvt. Ltd. and Vidit Trading Pvt. Ltd. for fraudulently obtaining the loan to the extent of Rs 38.50 crore on the basis of forged documents, concealment of facts and criminal conspiracy. These loans/credit limits were availed by these above said companies, owned and controlled by Subhas Sharma, from Axis Bank and Punjab National Bank at Raipur. A total amount of Rs 31.37 crore against these loans/credit limits was outstanding with the above banks and the same have been declared as fraud by the banks and case has been registered by law enforcement agencies for fraudulently obtaining the loan on the basis of forged documents, concealment of facts and criminal conspiracy.

“Investigation under PMLA revealed that Subhash Sharma was involved in the conspiracy of taking various loans in his companies and diverting the same to other companies in the form of loans and advances. Majority of the loan funds taken in his companies were diverted by way of transfer to other associate companies”, the officials in the probe agency said. The ‘Proceeds of Crime’ to the tune of Rs 29.65 crore generated out of the loan account of Hotel Sapphire Inn, Goodluck Petroleum Company Pvt Ltd and Vidit Trading Pvt Ltd were utilized for the creation of assets in Ferro Alloys Unit of Chhattisgarh Steel and Power Ltd during his period of association with this company. This was done by way of acquiring corresponding shares in the name of his shell companies which were used for routing of funds only, they added further. Further investigation is under progress, the ED said.