New Delhi [India], January 16 (ANI) The Enforcement Directorate (ED) has attached several immovable properties worth Rs 442.85 crore in the bank fraud case of erstwhile Kwality Ltd under the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Thursday.
The attached properties comprise a farmhouse at DLF Chhatarpur (12,000 sq yards), residential properties at Vasant Vihar and Punjabi Bagh and several residential plots at Karnal and Mohali. The properties were owned by the then-erstwhile promoters Siddhant Gupta and Sanjay Dhingra of Kwality Limited through dummy companies.
As per the agency, the driver and security guard of the promoters were the directors in such companies.
ED said it initiated investigations based on the First Information Report registered by the Central Bureau of Investigation (CBI) against Siddhant Gupta and Sanjay Dhingra of Kwality Ltd for cheating banks.
The agency said that Kwality Ltd was engaged in processing, and trading of milk, ice creams and various dairy products.
“The FIR alleged that Kwality Limited through the erstwhile Directors indulged in falsification and fabrication of books of accounts by misrepresentation of sales, purchases, debtors and creditors and thereby cheated the Consortium of banks,” said the ED.
The bank fraud is to the tune of Rs 1400.62 crore, according to the FIR.
ED investigation revealed that the then promoters and directors fudged the books of accounts to show higher sales and debtors.
“Huge amounts of trading (sales and purchase) were made without actual physical deliveries or receipt of the goods at factory premises. It was also noticed that sham companies and firms operated through implanted and dummy owners were used to divert the bank funds. The funds diverted through the stated modus were circulated, layered to conceal its origin and routed to different accounts as per the instructions of the promoters for purposes not intended by the banks,” the agency stated.
ED had earlier conducted search operations in 15 locations connected with the erstwhile promoters of Kwality Ltd on November 27 last year. During the search operations, cash amounting to Rs 1.3 crore and various evidence related to assets and bank accounts held through several shell companies by the promoters were recovered and seized.
The agency said high-end luxury cars like Porsche, Mercedes and BMW, having purchase value of about Rs 4 crore purchased in the name of the benami and dummy companies was also found during the search and were seized. Further Demat accounts having an investment value of about Rs 2.5 Crore were also frozen. (ANI)
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