Under the Prevention of Money Laundering Act, 2002 (PMLA), the Directorate of Enforcement (ED) has provisionally attached immovable and movable assets worth Rs. 21.19 Crore, including bank balances worth Rs. 9.37 Crore and immovable assets worth Rs.11.82 Crore of M/s. ARSS Damoh-Hirapur Tolls Pvt. Ltd. (M/s. ARSSDHTPL), M/s. ARSS Infrastructure Projects Ltd. (M/s. ARSSIPL), M/s. Anil Contractors Pvt. Ltd. (M/s. ACPL) and its directors have been charged in connection with a bank fraud case that resulted in a wrongful loss of Rs.22.42 crore to the Central Bank of India in Bhubaneshwar.
The inquiry was launched under the PMLA on the basis of an FIR and Charge sheet filed by the CBI, BSFB, Kolkata against M/s. ARSSDHTPL and others in connection with a loan obtained by M/s. ARSSDHTPL for the execution of the Damoh-Hirapur Road project in Madhya Pradesh.
M/s. Madhya Pradesh Road Development Corporation Ltd. terminated the project construction concession agreement after an investigation indicated that the business failed to complete the construction work on schedule.
During the PMLA investigation, it was also revealed that the term loan amount of Rs. 56.29 Crore was disbursed to M/s. ARSSDHTPL during the year 2011-12 was diverted to regularise M/s. ARSSIPL’s irregular cash credit loan account in State Bank of India, Commercial Branch, Bhubaneswar, and also diverted to other bank accounts of M/s. ARSSIPL. The funds were subsequently moved for expenses unrelated to the Damoh-Hirapur Road project, as well as to a sister firm called M/s. ACPL, which had no role in the Damoh-Hirapur Road project.
The aforementioned activities of M/s. ARSSDHTPL, M/s. ARSSIPL and its Directors resulted in a wrongful loss of Rs.22.42 Crore to the bank after a One-Time-Settlement (OTS) payment of Rs.40 Crore to the bank. An investigation into the situation is now underway.
