The Directorate of Enforcement (ED), Bhopal Zonal Office, has provisionally attached immovable properties valued at approximately Rs 12.62 crore under the Prevention of Money Laundering Act (PMLA), 2002.
This action is related to a bank fraud case involving M/s Excel Vehicles Pvt. Ltd. and its directors, Manju Garg and Rishabh Garg. The attached assets include an agricultural land and a commercial plot located in Tehsil Kolar, district Bhopal.
Following an investigation based on an FIR by the CBI’s Anti-Corruption Branch, Bhopal, against the company and its directors for allegedly defrauding Bank of India of Rs 42 crore, the ED took this step.
The CBI filed a charge sheet before the Special Judicial Magistrate (CBI Cases), Indore, on December 20, 2022. During the investigation, the ED conducted a search operation on November 6, 2024, leading to the seizure of cash and ornaments worth Rs 1.09 crore.
Further inquiries revealed that Excel Vehicles Pvt. Ltd. had availed credit facilities of about ₹42 crore from Bank of India for its Tata Motors dealership operations.
However, the company allegedly misrepresented the status of collateral securities and concealed the fact that one of the mortgaged properties was already charged with Kotak Mahindra Bank.
Investigators also found that substantial amounts from the company’s cash credit accounts were diverted to sister concerns and related entities without legitimate business justification.
According to the ED, this diversion of funds indicates layering and siphoning, a classic method of laundering illicit proceeds.
The provisional attachment of properties worth Rs 12.62 crore represents the equivalent value of proceeds of crime identified during the investigation.
Officials highlighted that the fraud not only caused wrongful loss to the Bank of India but also undermined the integrity of the financial system. The matter is currently pending trial before the Special Court.
The ED mentioned that further investigation is ongoing to trace additional assets and financial transactions connected to the accused and their associates.
