Against 27 accused, including M/s Ganindu Milk and Milk Products Pvt. Ltd (GMMPL) and other connected Siddharth Group of Companies businesses, as well as their director and promoters, the Directorate of Enforcement (ED) has filed a prosecution complaint before the Hon’ble Special Court (PMLA), Mapusa. On August 17, 2023, the Honourable Special Court took note of the situation.
The ED launched a PMLA investigation in response to CBI, Goa investigations into a bank fraud case involving M/s Ganindu Milk and Milk Products Pvt. Ltd. and others.
According to an ED investigation, Ganindu Milk and Milk Products Pvt. Ltd. secured a term loan from the State Bank of India for Rs. 34.20 crores on March 15, 2011, with the intention of establishing an Ultra-Heat Treatment Plant (UHT) in Solapur, Maharashtra, to produce tetra pack milk. Under the pretence of buying UHT machinery, GMMPL unlawfully transferred a term loan of Rs. 20 crores into the bank accounts of other affiliated companies.
Similarly, Ganindu Milk and Milk Products Pvt. Ltd. established 9 Letters of Credit (LCs) with the State Bank of India for the delivery of butter, and a total of Rs. 19,01,98,670/- was discounted. However, the LC amount was syphoned into the bank accounts of other associated companies rather than being used for the planned purpose of procuring butter.
In order to attach 11 immovable assets and one mobile property (FD) totalling Rs. 39,01,98,670, a provisional attachment order dated October 6, 2021 was issued. This order was then affirmed by the Hon’ble AA, New Delhi, by an order dated July 25, 2022. Further research is now being conducted.