The searches were undertaken against Mandhana Industries Limited (now GB Global Ltd.) and its promoters, the federal agency said in a statement
Enforcement directorate. File pic
ED raided a Mumbai-based business group on Wednesday in an alleged Rs 975 crore bank loan fraud linked money laundering case, reported PTI.
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The searches were undertaken against Mandhana Industries Limited (now GB Global Ltd.) and its promoters, the federal agency said in a statement.
As per the report, luxury cars like Mercedes Benz and Lexus, and watch brands like Rolex and Hublot apart from more than 140 bank accounts and lockers were seized after the raid.
The money laundering case stems from a CBI FIR filed against the company, its directors Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana and others based on a complaint filed by the Bank of Baroda for allegedly defrauding a consortium of banks to the tune of Rs 975.08 crore, according to the statement issued on Thursday.
Mandhana Industries Ltd and its directors "hatched a criminal conspiracy" to cause loss to banks and corresponding wrongful gain to themselves by "diverting" loan funds through fraudulent transactions and circular trading, it said.
In the searches conducted, the Enforcement Directorate (ED) said that it unearthed "crucial incriminating" documents including property documents
More than 140 bank accounts, five lockers and shares and securities worth Rs 5 crore have been frozen. Addiionally, three high-end cars, including a Lexus and a Mercedes Benz, along with multiple watches of brands like Rolex and Hublot were seized during the raids, the ED said.
"Various fictitious entities were incorporated by the directors of Mandhana Industries Ltd. in the name of employees of the company for layering funds through the bank accounts of such entities. Suspicious third-party transactions were made to divert funds to the accounts of promoter/directors and their family members and bogus purchases were booked against payments made to different entities providing accommodation (hawala) entries," it alleged.
ED, Mumbai has conducted search operations at 12 different locations across Mumbai under the provisions of the PMLA, 2002 on 26.06.2024 in a case against M/s Mandhana Industries Limited and others in a case of bank fraud.
— ED (@dir_ed) June 27, 2024
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