ED arrests Haryana-based Mahesh Timber firm's director in bank fraud case
May 25, 2022
New Delhi [India], May 25 : The Enforcement Directorate has arrested Ashok Kumar Mittal, director of Haryana-based Mahesh Timber Pvt Ltd firm in a bank fraud case.
ED investigators arrested Mittal from Karnal in Haryana on Monday under the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated a money-laundering investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI) for criminal conspiracy, cheating, forgery and criminal misconduct of public servants against the company, its directors and others.
Mittal is the key director of Mahesh Timber Pvt private Ltd, who in connivance with a bank official has fraudulently got a Letter of Credit limit enhanced from Rs 21 crore to Rs 195 crore, which was diverted to his Singapore based related entities on account of fake imports, said the ED.
"They caused overall wrongful loss to the bank to the tune of Rs 155 crore and wrongful gains to themselves in this manner."
Mittal was non-cooperative during the investigation and resorted to withholding relevant information and was misleading the investigation, said the ED.
After the arrest, the ED said Mittal was produced before a Special Court in Panchkula, Haryana on Tuesday which remanded him to ED custody for four days.
