The Enforcement Directorate (ED) has carried out search operations at multiple locations in Maharashtra in connection with a Rs 350-crore bank fraud case involving M/s KGS Sugar
and Infra Corporation Ltd and others, officials said on Monday.
The raids were conducted on May 23 under the Prevention of Money Laundering Act (PMLA), 2002, as part of ongoing investigation against KGS Sugar and others for their involvement in a massive bank fraud case. The searches took place across Nashik, Kopargaon (Shirdi), and Thane.
The case pertains to the fraudulent procurement of bank loans exceeding Rs. 350 crore by submitting forged and fictitious documents, and the subsequent diversion and siphoning of the funds for personal gains and acquisition of assets.
According to the official, during search operation Indian currency amounting to Rs. 70.39 Lakh, gold Jewellery valued at Rs. 1.36 Crore (approx.), a high-end luxury vehicle, Demat account/shares valued at Rs. 10 lakh (approx.) multiple electronics devices, documents pertaining to benami properties, other incriminating documents and records were recovered and frozen/seized
ED started investigation on the basis of an FIR and subsequent chargesheet filed by Kadim Jalna Police Station. The case alleges offences of cheating, criminal conspiracy, use of forged documents or electronic records as genuine, and criminal misconduct committed by M/s KGS Sugar and Infra Corporation Ltd., Dinkar S. Bodke, one of the Directors and others.
According to the ED, investigation showed that M/s KGS Sugar fraudulently obtained bank loans of around Rs. 350 Crore from a consortium of banks led by Canara Bank. The funds were siphoned off through multiple round-tripping and diversions, using entities specially incorporated by the accused persons for this purpose. The diverted funds were routed through entities linked to civil contractors, EPC contractors, and others, in the garb of genuine business transactions.
The further probe is ongoing.
