INDIA. Mumbai: On Wednesday, the Directorate of Enforcement (ED) conducted search operations at seven locations of a Karnataka-based import-export firm under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), resulting in the discovery of immovable property worth Rs 100 crore.
The raids, which took place on Monday, June 5, targeted premises belonging to M/s Bharath Infra Exports and Imports Ltd and its related entities in Bengaluru and Davangere, Karnataka. The ED statement highlighted that the operations were carried out in connection with a bank fraud case.
During the search operation, immovable properties with an estimated value of approximately Rs 100 crore were unearthed, and a sum of Rs 14.5 lakh in cash was seized. Additionally, incriminating documents, digital devices, and bank accounts belonging to the entities under investigation were frozen and confiscated.
M/s Bharath Infra Exports and Imports Ltd had availed loan facilities from the State Bank of India, Bengaluru City branch, in the form of cash credit, Export Promotion Council/Foreign Bill Discounting (EPC/FBD), non-fund based working capital, and letters of credit (inland and regular).
The account of M/s Bharath Infra Exports and Imports Ltd was declared a Non-Performing Asset (NPA) on January 17, 2017, due to non-repayment of the bank’s dues amounting to Rs 113.38 crore.
The ED’s investigation revealed that the promoters/directors of M/s Bharath Infra Exports and Imports Ltd had misappropriated the credit facility obtained from the State Bank of India (SBI) by wrongfully diverting funds and loans to related parties. They had also submitted forged/fabricated invoices/documents to the bank and written off sales without fulfilling contractual obligations.
Furthermore, the investigation uncovered that the accused had siphoned off Rs 101.18 crore related to 10 Letters of Credit (LCs) issued to M/s Aradhya Wire Ropes Pvt. Ltd. These funds were subsequently credited into the bank account of M/s Aradhya Wire Ropes Pvt. Ltd and then routed through the bank accounts of various other entities as proceeds of crime.
In several instances, payments were made to a transport contractor and agents who had provided fake vehicle details and invoices to M/s Bharat Infra Exports and Imports Pvt Ltd and M/s Aradhaya Wire Ropes Pvt Ltd without any actual movement of material at the site.
Bharath Infra Exports and Imports Limited, a publicly incorporated company registered at the Registrar of Companies in Bangalore, is involved in the wholesale distribution of non-durable goods. The company is led by Dayananda, Managing Director, Guduputi Chandramouli, Additional Director, and Neelmma, Whole-Time Director.
Based on a complaint by the State Bank of India (SBI), the National Company Law Tribunal had directed the company in 2019 to reconcile its accounts entry by entry with the bills raised and transactions undertaken regarding all the provided working capital facilities.
Also Read: Enforcement Directorate Searches Shiv Sena Leader Sanjay Raut’s Residence in Mumbai
