In the money laundering probe against Varron Group of Industries, the Directorate of Enforcement (ED) has temporarily attached 12 immovable properties in Nagpur, Pune, Ratnagiri, and Goa valued at 12.80 Crore under the PMLA 2002.
The ED launched the money laundering probe in response to three FIRs filed by the CBI against the Varron Group and its promoter, Late S.P. Sawaikar, in a loan fraud case worth more than 3000 crores.
An ED investigation revealed that Late S.P Sawaikar, promoter of the Varron, conspired with bank officials to fraudulently discount 246 forged bills backed by a Letter of Credit (LC) of approximately $300,000 opened by Canara Bank, Deccan Gymkhana Branch, Pune on behalf of M/s Varron Aluminium Pvt Ltd (VAPL). However, there was no actual movement of the products, and the funds were moved to pay off previous loans, and the LCs were eventually devolved, resulting in a loss for the Bank of India.
The prior loan accounts were not serviced on a regular basis, and the loan proceeds were diverted for uses other than those mentioned, with funds used to build landed properties in the name of the promoters as well as benami assets.
Previously, on 25.05.2021, the ED attached proceeds of crime worth 166.47 crores in the same case, and a Prosecution Complaint was filed before Hon. PMLA Court, Mumbai on 06.02.2023. The total amount attached to this scam is 179.27 crore. More research is being conducted.
