The ED June 18 said it has attached more than 6,000 vehicles worth about Rs 1,610 crore in connection with a bank loan fraud and money laundering case against a Surat-based company and its promoters.
The agency issued a provisional order for attachment of assets under the Prevention of Money Laundering Act (PMLA) against Siddhi Vinayak Logistics Ltd (SVLL) and its Director Rupchand Baid.
Baid was arrested in the past by the agency in this case for his alleged role in “aiding and laundering of tainted money in the Bank of Maharashtra loan fraud case” to the tune of Rs 836.29 crore.
A total of 6,170 vehicles worth Rs 1,609.78 crore have been attached as part of the latest order, it said.
The central probe agency had similarly attached assets of the company worth over Rs 19 crore in June, 2017.
The Enforcement Directorate (ED) said it filed the money laundering case against the company and its directors on the basis of a CBI FIR.
“Investigation made so far revealed that the loans were availed on the basis of forged or fabricated documents and in the name of employees and drivers who were kept in dark by SVLL. Investigation also revealed that Baid routed these loans through accounts of various related entities,” the ED said in a statement.
It said funds were raised from banks in the form of loans or credit facilities under various schemes, including the ‘Chalak se Malak’ scheme, in which the loans were availed in the name of drivers and employees of SVLL for purchase of old and new vehicles, it said.
The ED said the loans were not used for intended purpose and were routed through the accounts of SVLL and its related entities and finally were diverted for personal gains, company expenses and repayment of old pending loans.
The agency alleged Baid was the played “main conspirator” in the bank loan fraud case.
It had said in the past that investigation revealed that the loan amount of Rs 836.29 crore was disbursed for the purchase of vehicles to various companies on Baid’s directions to bank authorities the ‘Chalak se Malak’ scheme (driver to owner) for drivers by Baid.
“After disbursement of the loan to these companies, the loan money was circulated through a chain of group associate companies through a series of unsecured loan and fraudulent transactions,” the ED had earlier said while describing the role of Baid in the case.