Under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement conducted search operations on 18.5.2023 at 8 residential and commercial premises in Bhubaneswar in bank fraud cases involving M/s GDS Builders Pvt. Ltd., M/s Surnag Builders Pvt. Ltd., and others. During the search, cash worth Rs. 15 lakhs, gold jewellery weighing 1.978 kgs. and valued at Rs. 1.13 crore, sale documents for particular properties, several incriminating paperwork, and other technical devices were located and seized.
On 31.12.2020, the ACB, CBI, Bhubaneswar filed three FIRs and subsequent chargesheets under various sections of the IPC and the Prevention of Corruption Act against M/s GDS Builders Pvt. Ltd., its Director Uma Shankar Patro, M/s Surnag Builders Pvt. Ltd, three officers of Union Bank of India (UBI), Nayapalli Branch, Bhubaneswar, other private Builders and individual borrowers.
During an investigation conducted under the PMLA, 2002, it was discovered that the Directors / Builders, in collaboration with certain bank officers of Union Bank of India, Nayapally branch, Bhubaneswar, hatched a criminal conspiracy in the year 2017 in which housing loan amounts were initially sanctioned to the borrowers and subsequently credited to the accounts of the Directors / Builders on behalf of the borrowers without verifying the details of the real estate projects.
These applicants were organised by the Directors/builders, and their loan applications were dishonestly processed/accepted by bank employees without adequate verification and in violation of bank guidelines/procedures. The loan amounts were then misappropriated by the directors/builders for purposes other than the approved purpose of the sanction, amounting to Rs. 18.79 Crore (approx.) in collusion with their family members, close relatives, and other accomplices.
ED Seizes Rs 18 Crore in Assets of GDS Builders, Surnag Builders in Bank Fraud Case. The looted funds were utilised to achieve their personal and illicit financial goals. More research is being conducted.
