ED raids 11 locations in Madhya Pradesh, Maharashtra in PMLA case

New Delhi [India], February 2 : The officials of the Enforcement Directorate said they conducted searches at 11 premises against a Madhya Pradesh-based company and its directors, who allegedly cheated a UCO Bank-led consortium of Rs 109.87 crore.
ED officials said searches were conducted in Indore, Jaura, and Mandsaur in the state of Madhya Pradesh and Aloka in Maharashtra involving group companies of Narayan Niryat India Private Limited and the residences of directors under the provisions of the Prevention of Money Laundering Act, 2002.
"During the search, various incriminating documents, books of accounts, and details of immovable/ movable properties were found and seized," it said.

The ED initiated the investigation on the basis of the First Information Report registered against the said company and the charge sheet filed by the Central Bureau of Investigation, AC-IV, Vyapam, Bhopal, under various sections of the Indian Penal Code.
Its investigation revealed that during the period of 2011 to 2013, the said company availed of credit facilities totaling approximately Rs 110.50 crore in the form of a Letter of Credit (LC) and Export Packing Credit (EPC) from a consortium of banks, namely UCO Bank, Corporation Bank (merged with Union Bank of India), and Punjab National Bank. The company failed to repay the loan amount to the tune of Rs 109.87 crore. The company didn't utilise the fund for the purpose for which it was sanctioned and submitted fraudulent books of account for availing the bank loan.
They defrauded the said banks and diverted the amounts to various associates/sister concern companies without transacting any goods. Further, it was found that part of the property mortgaged with the banks was sold to third parties without any intimation to the banks. Thus, the said company was found to have knowingly indulged in the processes and activities connected to the proceeds of crime, it added.