ED attaches assets worth Rs. 34.47 Crores in a Bank Fraud case ..
New Delhi, Dec.07 (HS): Enforcement Directorate(ED) has attached properties worth Rs. 34.47 Crores under Prevention of Money Laundering Act, 2002 (PMLA) in a case of Bank loan fraud by M/s Biotor Industries Limited & others.
The attached properties include a Land, Plant & Machinery owned by M/s KGN Enterprise Ltd. and M/s Sailani Agro-tech Industries Ltd. at Village Hariyala, Dist Kheda, Gujarat and residential property of Arif Ismailbhai Memon at Paldi, Ahmedabad.
ED had initiated investigations under PMLA against M/s Biotor Industries Limited (BIL) and its Managing Director Rajesh M Kapadia and others on the basis of the two FIRs one each registered by Gujarat Police and C.B.I. Investigation under PMLA revealed that the accused had misappropriated the funds to the tune of Rs. 250 Crores (approx) by preparing bogus bills & invoices during the year 2007 to 2009.
It was also revealed during investigation that Arif Ismailbhai Menon, 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.
By adopting the fraudulent methods Arif Ismailbhai Memon has parked the Proceeds of Crime about Rs. 62 Crores in the accounts of KGN Group Companies.
Subsequently the same was layered and siphoned off. The investigation conducted so far resulted in identification of four immovable properties amounting to Rs. 34.47 Crores owned by KGN Group & its associates. Earlier, ED has attached immovable properties to the tune of Rs.149.10 crores of Biotor Industries Ltd. & others. Prosecution Complaints have also been filed against M/s Biotor Industries Limited & others. Further investigation is in progress.
