Bhopal, Aug 5 (IANS) The Enforcement Directorate seized incriminating documents related to benami companies and properties during a search on the premises of a company, Advantage Overseas Pvt. Ltd, in a Rs 1,266 crore bank fraud case, an official said on Tuesday.
The Bhopal Zonal Office conducted search operations in the case of Advantage Overseas Pvt. Ltd. (AOPL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The search operation led to the recovery of substantial incriminating evidence, including documents indicating the existence of multiple companies opened in the name of employees/benamidars for laundering of Proceeds of Crime, the ED said.
The investigation against the company was launched following the registration of an FIR for allegedly causing a loss to the tune of Rs 1,266.63 crore to the State Bank of India (SBI).
ED investigation revealed that AOPL defrauded the bank first by raising its turnover 100 times in its account statements to take undue benefits from banks, did related party transactions and diverted the bank’s funds in the guise of unsecured loans to themselves and their sister concerns via 73 different entities.
After diverting funds, AOPL declared bankruptcy, forcing SBI to file an application in the National Company Law Tribunal.
During the search operation, the ED seized incriminating documents. These documents revealed that the company’s director and his associates had acquired significant movable and immovable assets both in India as well in abroad.
The assets identified during searches so far are estimated to be valued at over Rs 300 crore, the ED said.
Earlier, the New Delhi-based Bank Security and Frauds Cell of the Central Bureau of Investigation registered an FIR against the company on receiving a complaint.
The FIR was registered under various sections of the Indian Penal Code and Prevention of Corruption Act, 1988, against Advantage Overseas Pvt. Ltd. (borrower Company), and its directors/related persons and unknown public servants.
Those named in the FIR were booked for penal provisions, including criminal conspiracy for the purpose of cheating, forgery of valuable security, and causing loss to the tune of Rs 1,266.63 crore to SBI.
–IANS
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