Ahmedabad, Aug 24 (IANS) The Enforcement Directorate (ED) has provisionally attached movable and immovable properties worth Rs 9.19 crore in a bank fraud and money laundering case involving Gujarat-based Sayona Colors Private Limited and others, the agency said on Monday.
The attachment was made by the ED’s Ahmedabad Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
It is the second provisional attachment order in the case, taking the total value of assets attached so far to Rs 9.62 crore.
The investigation was initiated based on an FIR registered by the Central Bureau of Investigation’s (CBI) Bank Securities and Fraud Branch (BS&FB), Mumbai, against Sayona Colors Pvt Ltd and its director Paresh Patel, Shamrock Chemie Pvt Ltd and its directors, as well as others.
According to the ED, the case involves alleged fraud against banks amounting to Rs 71.88 crore.
The agency said its investigation found that loan funds were allegedly diverted to sister concerns and group entities through bogus agreements and circular transactions.
The funds were also allegedly used to acquire properties in the names of promoters and group entities.
According to the ED, Sayona Colors transferred loan funds to group companies either directly or by allegedly misusing Letter of Credit facilities.
The companies are also alleged to have entered into bogus agreements and conducted fraudulent transactions against them to divert loan funds.
The agency further alleged that Sayona Colors and Shamrock Chemie routed funds among themselves and other group companies in circular transactions, which were allegedly used to induce banks to increase their credit facilities.
The assets covered by the latest provisional attachment include four agricultural lands which, according to the ED, were directly acquired using diverted loan funds.
The attachment order also covers term deposits, two industrial lands, a residential flat and equity shares held in two demat accounts.
The ED’s action is part of its ongoing investigation into the alleged laundering and diversion of bank funds. The agency said further investigation in the case is in progress.
--IANS
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