The Enforcement Directorate (ED) on Wednesday said it recently carried out search operations at seven locations in Bengaluru and Davangere in Karnataka belonging to Bharath Infra Exports and Imports Ltd and its related entities in connection with a bank fraud case.
The ED said that Bharath Infra Exports and Imports Ltd availed loan facilities in the form of cash credit, EPC/FBD, Non-fund based working capital and letters of credit (Inland and regular) from the State Bank of India, Bengaluru City branch. The account of the said entity was classified as a Non-Performing Asset on January 17, 2017 due to non-repayment of the bank’s dues. The outstanding was Rs 113.38 crore.
The ED probe revealed that the promoters, directors of Bharath Infra Exports and Imports Ltd misappropriated the credit facility availed from the SBI by wrongful diversion of loans to related parties. The ED claimed that they submitted forged invoices, documents to the bank and also written off sales booked without complying with contractual obligations.
“The investigation revealed that Rs 101.18 crore was siphoned off by the accused with respect to 10 LCs issued to Aradhya Wire Ropes Pvt. Ltd, which got devolved and credited into the bank account of Aradhya Wire Ropes Pvt. Ltd and subsequently these proceeds of crime were routed through the bank accounts of various other entities. In many cases, payments were made in favour of a transport contractor and agents, who had provided fake vehicles details and invoices to Bharat Infra Exports and Imports Pvt Ltd and Aradhaya Wire Ropes Pvt Ltd without actual movement of material at the site,” said the official.
During the search operation immovable properties worth Rs. 100 crore were unearthed and cash to the tune of Rs 14.5 lakhs was seized.
In addition to this, incriminating documents, digital devices and bank accounts of these entities were also frozen and seized.
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