In a bank fraud case, the Directorate of Enforcement (ED) has temporarily attached immovable and movable property worth Rs 105.5 crore, including residential sites, commercial properties, and a farmhouse worth Rs 104.90 crore located in Bengaluru, as well as cash worth Rs 14.5 lakh seized from M/s Bharath Infra Exports and Imports Ltd. and others.
On the basis of an FIR filed by the CBI’s Bank Securities Fraud branch in Bangalore against M/s Bharath Infra Exports-Import Pvt Ltd and its promoters/directors under the Prevention of Corruption Act of 1988, which claimed the company was trading in construction materials and had accessed cash credit limits from the State Bank of India, the ED opened an investigation. The cash credit account of the aforementioned firm was later designated as a NonPerforming Asset (NPA) on January 17, 2017, as a result of the bank’s outstanding debts and dues totalling Rs 113.37 Crore.
According to an investigation by the ED, M/s Bharath Infra Exports and Imports Ltd. opened 10 LCs in the fiscal year (FY) 2016–17. Subsequently, transactions were made fraudulently to convert the Non–Fund Based LC to increase Fund–Fund-based cash Credit availability in the bank accounts of other businesses. These transactions included circular trading and falsely claiming that these businesses’ turnover had increased.
Circular trading and falsely showed the increased turnover in these companies M/s Bharath Infra Exports and Imports Ltd hatched a conspiracy with M/s Aradhya Wire Ropes Pvt Ltd, M/s Aradhya Steel Pvt Ltd, M/s Vedik Ispat Pvt Ltd, M/s Bhavani Steel Corporation and M/s Speigel Enterprises Pvt. Ltd.. The money was originally credited to M/s Aradhya Wire Ropes Pvt. Ltd’s bank account before being transferred via the bank accounts of other businesses before being refunded to M/s Bharath Infra Exports and Imports Ltd. Further research is now being conducted.
