ED raids People’s Group Bhopal for alleged unusual loan transactions
Sep 05, 2023
New Delhi [India], September 5 : The Directorate of Enforcement (ED) conducted search operations on September 4, at multiple locations in Bhopal, focusing on the activities of the People’s Group - Bhopal and its associated entities, including Sarvajanik Jankalyan Parmarthik Nyas, Peoples University and Sarks Metal Pvt Ltd.
The investigation also involved scrutinizing the actions of individuals, including Rohit Pandit, Mayank Vishnoi and others, who serve as directors within these entities.
The ED launched this investigation in response to a complaint filed by the Registrar of Companies, Gwalior.
The complaint alleges that directors affiliated with entities like Peoples General Hospital Pvt Ltd, Peoples International and Services Pvt Ltd, and PGH International Pvt Ltd misused their positions of authority.
They purportedly approved loans exceeding 250 crore rupees at zero or significantly reduced interest rates to related entities.
These financial transactions are believed to have resulted in financial harm to shareholders and undue financial benefits to the related entities.
During the course of the search operations, ED officials claimed to have uncovered significant evidence, including various documents that detailed the loan transactions involving these related entities. Additionally, a sum of Rs 8 lakhs in cash was seized as part of the ongoing investigation.
The ED's actions are part of its efforts to scrutinize financial transactions that raise concerns about potential money laundering and illicit financial activities.
As the investigation progresses, more information is expected to come to light regarding these alleged unusual loan transactions and their implications for the entities involved.
This case underscores the regulatory authorities' commitment to ensuring transparency and accountability in financial dealings and upholding the integrity of the financial system.
Further developments in this case will be closely monitored as the investigation unfolds.
