MUMBAI: The Enforcement Directorate (ED) has frozen funds worth about ₹ 35 crore and seized a BMW during searches at six locations in Mumbai and Chhatrapati Sambhaji Nagar in an alleged ₹ 135-crore bank fraud case involving a private firm, the agency said.
The agency froze a fixed deposit account with a balance of USD 3.7 million (about ₹ 35.71 crore) held with the Singapore branch of Indian Bank. The case relates to alleged fraud of about ₹ 135 crore against a consortium of banks led by Bank of India. GGI LLP had obtained loans from the consortium, which later turned into non-performing assets, with outstanding dues of about ₹ 135 crore, according to the ED.
The investigation has further revealed that the loan funds were allegedly siphoned off through a complex web of round-tripping and diversion, using entities incorporated for the purpose. The ED’s investigation is based on a case and charge sheet filed by the Pune branch of the Central Bureau of Investigation (CBI), which has accused GGI LLP, its partners and others of cheating, criminal conspiracy, and criminal misconduct. The ED is investigating allegations that the loan funds were subsequently diverted and siphoned off.
The searches were conducted against M/S Gajanan Gangamai Industries LLP (GGI LLP), its partners, and others as part of a money-laundering investigation, according to ED officials. A BMW, along with documents and digital devices containing allegedly incriminating material, was also seized, officials said. The consortium subsequently classified the accounts as fraudulent, officials said. The diverted funds were further routed through multiple shell entities and entry providers, followed by substantial cash withdrawals, masking the movement and utilisation of the proceeds of crime, officials said.
