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Bank fraud: ED attaches Rs 34-cr assets of Gujarat company

PTI   

Bank fraud: ED attaches Rs 34-cr assets of Gujarat company
Business1 min read
New Delhi, Dec 7 () Assets worth over Rs 34 crore of a Gujarat-based firm have been attached under the anti-money laundering law in connection with an alleged bank fraud case, the Enforcement Directorate said on Saturday.

The Enforcement Directorate probe pertains to Biotor Industries Limited and its managing director, Rajesh M Kapadia, and others, which is also being investigated by the Gujarat police and the Central Bureau of Investigation.

Probe revealed that the accused had "misappropriated" funds to the tune of about Rs 250 crore by preparing bogus bills and invoices during 2007-2009, the ED said in a statement.

"Arif Ismailbhai Memon, owner of KGN Group of companies, was instrumental in preparing the circular paper transactions for transferring proceeds of crime in connivance with Rajesh Kapadia and others," it said.

By adopting fraudulent methods, Memon parked the proceeds of crime of about Rs 62 crore in the accounts of the KGN Group companies, it alleged.

The federal agency has issued a provisional order under the Prevention of Money Laundering Act (PMLA) for attachment of a land, plant and machinery owned by KGN Enterprise Ltd and Sailani Agrotech Industries Ltd in Hariyala village of Gujarat's Kheda district and Memon's residential property located at Paldi in Ahmedabad.

The total value of the assets frozen under the latest order is Rs 34.47 crore, it said.

The ED had earlier attached assets of Rs 149 crore and has filed few charge sheets in this case. NES HMB

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