Enforcement Directorate assets worth Rs 34.47 crore in bank fraud case

The Enforcement Directorate (ED) on Saturday attached properties worth Rs 34.47 crore under Prevention of Money Laundering Act (PMLA) in a case of bank loan fraud.

A case has been registered against M/s Biotor Industries Limited and others and the ED has started investigation against the company and its Managing Director Rajesh M Kapadia. The investigation is being carried out on the basis of two FIRs registered by Gujarat Police and CBI. The investigation under PMLA revealed that the accused had misappropriated the funds to the tune of Rs 250 crore by preparing bogus bills and invoices during the year 2007 to 2009.

The attached properties include a plot of land, plant and machinery owned by M/s KGN Enterprise Ltd. and M/s Sailani Agro-tech Industries Ltd. at a village in Gujarat’s Kheda district and residential property of KGN Enterprise owner Arif Ismail Memon at Paldi, Ahmedabad.

It is also revealed that Memon was instrumental in preparing the paper transactions for transferring proceeds of crime in connivance with Kapadia and others. Memon swindled about Rs 62 crore and parked it in the accounts of KGN group of companies, the ED said.

Earlier, the ED has attached immovable properties to the tune of Rs 149.10 crore of Biotor Industries Ltd. and others. Prosecution Complaints have also been filed against them.