In the case of M/s Jagdamba AMW Automotives Pvt. Ltd. & others, the Directorate of Enforcement (ED) searched eight locations in Jabalpur, Katni, Satna, and Rewa, Madhya Pradesh, on January 13, 2024, in accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Pushpendra Singh, the principal culprit and director of M/s Jagdamba AMW Automotives Pvt. Ltd., was detained in Jabalpur during the search, and papers pertaining to immovable assets as well as cash totalling Rs. 16 lakhs were taken from his home property. On January 14, 2024, the apprehended individual appeared before the Honorable Special Court (PMLA), Jabalpur, whereupon the accused was placed into ED custody.
Based on a formal complaint/charge sheet submitted by the CBI, BSFB, New Delhi, under the Prevention of Corruption Act, 1988 and other IPC sections, the ED began an investigation into M/s Jagdamba AMW Automotives Pvt Ltd, its directors, and the Branch Manager of Canara bank, SME Branch, Jabalpur.
According to an ED investigation, Pushpendra Singh committed fraud totalling Rs. 14.93 Crore between April 2015 and March 2016 through M/s Jagdamba AMW Automotives Pvt Ltd in collusion with the then-branch manager, Krishna Dutt Dubey (deceased), and others. The fraud involved the erroneous approval and disbursement of 50 vehicle loans (Truck Loans), which were granted based on falsified and forged documents issued by M/s Jagdamba AMW Automotives Pvt Ltd.
The loan payments were always sent to the dealer’s bank account, M/s Jagdamba AMW Automotives Pvt Ltd. However, in most cases, the dealer failed to deliver the automobiles to the clients, resulting in loan accounts becoming non-performing assets (NPAs), which resulted in an unjust loss to the bank of Rs. 14.93 crore.
Moreover, the aforementioned loan proceeds were diverted for his personal use from the bank accounts of M/s Jagdamba AMW Automotives Pvt Ltd through RTGS, cash withdrawals, repayment of previous term loans, etc., rather than being paid to M/s AMW Motors Ltd, the company that manufactures AMW vehicles, for which the loans were authorized. As a result, it was determined that Pushpendra Singh had engaged in actions and procedures related to the proceeds of crime with knowledge. Additional research is currently being conducted.
