The Mumbai branch of the Enforcement Directorate (ED) launched a search operation at 12 sites connected to Mandhana Industries Ltd. This operation was initiated due to a money laundering case linked to an alleged bank loan fraud case amounting to Rs 975 crore.
Digging deeper, the ED identified and froze shares and securities of Rs 5 crore, multiple bank accounts, lockers, and also seized luxurious cars and high-end watches, as confirmed by the agency last Thursday.
The money laundering accusation by the ED is the result of an FIR filed by the Central Bureau of Investigation (CBI), Mumbai against Mandhana Industries Ltd (which is now recognized as GB Global Ltd). The company’s directors, namely Purushottam Mandhana, Manish Mandhana, and Biharilal Mandhana, along with others are also implicated in this case.
The Bank of Baroda, leading among a consortium of banks, lodged a complaint with the CBI that claimed a fraud of Rs 975.08 crore by the accused parties.
The CBI claimed that Mandhana Industries Ltd and the directors conspired criminally to inflict loss on the banks. This conspiracy allegedly led to equivalent wrongful gains for the directors by diverting loan funds via fraudulent transactions and circular trading. CBI has yet to file a chargesheet for the case.
The ED’s investigation unveiled that a variety of phoney entities were set up by the directors of Mandhana Industries Ltd under the company employees’ names. This setup was for the sake of laundering funds through bank accounts of the said entities.
There were suspicious transactions made to third parties leading to funds being redirected to accounts of the directors, their family members and promoters. In addition to this, payments were allegedly made to different entities providing fake purchases leading to accommodation entries, as per ED.
The search operation led to the identification of over 140 bank accounts, five lockers, and shares and securities amounting to Rs 5 crore. All of these have been frozen as a result of the search.
The operation also led to the seizure of three luxury cars including Lexus, Mercedes-Benz, high-quality watches from brands like Rolex, Hublot, a significant number of digital devices, and several seemingly incriminating documents.
Critical incriminating documents including property documents were also unearthed during the search operation, as revealed by the agency.
© The Indian Express Pvt Ltd
First posted on: 28-06-2024 at 00:02 IST
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Related Questions
What triggered the ED’s investigation into Mandhana Industires Ltd?
Investigation was initiated following an FIR registered by CBI, Mumbai, against Mandhana Industries for alleged bank fraud totalling Rs 975 crore. The whistleblowers are the company directors and the Bank of Baroda, who claimed a fraud of Rs 975.08 crore by the accused parties.
What were the outcomes of the ED’s raids on Mandhana Industries?
The ED’s operation led to the freezing of numerous shares, securities, bank accounts, lockers, also seizing luxurious vehicles, expensive watches, and identification of fraudulent financial activities. They froze 140 bank accounts, five lockers and shares and securities amounting to Rs 5 crore. They also seized three luxury cars and high-quality watches.
What are the allegations made against the directors of Mandhana Industries?
The allegations laid against the directors range from creating a criminal conspiracy to cause loss to banks and equivalent wrongful gains to themselves, setting up bogus entities for money laundering purposes, and fraudulent transactions leading to the diversion of loan funds.
