New Delhi [India], May 27 (ANI): The Enforcement Directorate on Thursday provisionally attached 20 immovable properties worth Rs 166 crore located in Mumbai, Pune and Ratnagiri in connection with a case of bank fraud involving Maharashtra-based Varron group of Industries and others, accused of discounting Letters of Credit on the basis of forged bills.
According to the ED, the money laundering investigation was initiated on the basis of an FIR
registered by the CBI against Late Shrikant Pandurang Sawaikar (Director of Varron Industries) and unknown banking officials of Bank of India and Canara Bank under the Prevention of Corruption Act.
"During the investigation, it was revealed that a criminal conspiracy was hatched by SP Sawaikar, Director of Varron Aluminium Pvt Ltd (VAPL), the prime accused and his accomplices to cheat Bank of India by inducing it to discount 246 forged bills backed by the Letter of Credit (LC) of around Rs 300 Crore opened by Canara Bank, Deccan Gymkhana Branch, Pune on behalf of VAPL," read the release.
It further stated the Bank of India negotiated and discounted the amount of the said bills in account of VAPL after deducting its charges. An amount of Rs 293 Crore was credited in the account of VAPL on the basis of false assurances and forged documents, said ED.
It further stated that part of the above-said loans was diverted and later on due date, Canara Bank denied the issuance of the relevant LCs.
Bank of India did not get the amount on due date and hence suffered a wrongful loss of Rs.
293 Crore, stated the ED.
The investigation further revealed that said money was layered multiple times through group companies and various shell entities floated by Late SP Sawaikar and
During further investigation it was found that said proceeds of crime were eventually used for purchasing immovable properties including residential flats, land and part of it was used in group companies of Varron Group, i.e M/s Varron Aluminium Pvt Ltd, M/s Varron Auto Comp Pvt Ltd and M/s Varron Industries Pvt Ltd, according to the ED.
Accordingly, ED today provisionally attached these properties worth of Rs 166 crore
under the Prevention of Money Laundering Act (PMLA), 2002. (ANI)