Under the Prevention of Money-laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has temporarily attached three immovable properties and one mobile property worth Rs. 3.54 crore that belong to Ashok Kumar Mittal, Director of M/s. Mahesh Timber Pvt. Ltd. is located in Karnal, Haryana.
On the basis of an FIR filed by the CBI (Bank Securities Fraud Branch), New Delhi under various sections of the Indian Penal Code and the Prevention of Corruption Act, 1988 for criminal conspiracy, cheating, forgery, and criminal misconduct of public officials, the ED launched a money laundering investigation against M/s. Mahesh Timber Pvt. Ltd., its director Ashok Kumar Mittal, and Others.
According to an investigation by the ED, M/s. Mahesh Timber Pvt. Ltd. fraudulently transferred funds totalling Rs. 173.03 crores to foreign countries, against the actual letter of credit limit of Rs. 21.47 crore, resulting in a wrongful gain for the company and wrongful loss of Rs. 155 crores to the bank.
Further investigation by the ED finds that money was syphoned off from bank loan funds and routed to a director-related Singapore-registered firm. In this case, the ED had already temporarily attached immovable property in the shape of plots/land in Mansa, Punjab, valued at Rs. 7.52 Crore. On May 23, 2022, the ED detained Ashok Kumar Mittal, Director of M/s Mahesh Timbers Pvt Ltd.
Currently in judicial custody is the accused. On July 20, 2022, with the offence being recognised on July 27, 2022, ED filed a Prosecution Complaint against Ashok Kumar Mittal, M/s Mahesh Timbers Pvt Ltd, and others before the Special PMLA Court in Panchkula, Haryana. The case has a total attachment of Rs. 11.06 billion. The probe is being expanded upon.
