Under the terms of the Prevention of Money Laundering Act, 2002 (PMLA), the Directorate of Enforcement (ED) conducted search operations on 02-05-2023 at 21 locations in Delhi and Gurugram associated with M/s Amira Pure Foods Private Limited, Karan A Chanana, and others.
The ED launched an investigation against the accused entities based on an FIR filed by the CBI against Karan A Chanana, his relatives, M/s Amira Pure Foods Pvt. Ltd., and others for committing fraud, criminal misappropriation, criminal breach of trust, cheating, and other offences that resulted in a wrongful loss of approximately Rs. 1201.85 crores to a consortium of banks led by Canara Bank.
After conducting a thorough investigation, the Enforcement Directorate (ED) discovered that the accused entities had engaged in fraudulent activities in collaboration with each other and other related or unrelated entities. They illegally diverted loan funds granted by a consortium of banks by transferring them into the accounts of shell companies, disguising the transactions as legitimate business deals.
It was also revealed that Karan A Chanana, the mastermind behind the scam, donated a substantial amount of 250,000 GBP to a political party in the United Kingdom since 2019. The donation was made through M/s Amira Pure Foods Pvt. Ltd., a subsidiary of one of the accused entities, even though the entity had defaulted on its loan repayment and was declared a non-performing asset (NPA) by the consortium member banks in 2016-17.
The ED’s findings suggest that the accused parties were involved in a deliberate and premeditated effort to defraud the consortium of banks and were using illegal means to launder money. During the course of their investigations, the ED has seized substantial incriminating evidence, including cash amounting to Rs. 1.01 Crore, and the investigation is still ongoing.
Cash totalling Rs. 1.01 crore was confiscated during a search activity conducted under the PMLA, 2002. Furthermore, several damning pieces of evidence were gathered throughout the search that demonstrates the accused entity’s method of diverting loan monies through shell businesses, accommodation entries, stock fudging/manipulation, and so on. More research is being conducted. The ED has vowed to take strict legal action against those involved in the fraudulent activities and to ensure that justice is served.
