Bank Fraud: ED Attaches Rs 185-Cr Assets Of Mumbai Firm
The Enforcement Directorate (ED) on Wednesday said it has attached Rs 185 crore worth assets in a money laundering case linked to a Mumbai-based company which is being investigated for allegedly cheating a consortium of 14 banks to the tune of over Rs 3,592 crore.
It said a provisional order for attachment of properties has been issued under the Prevention of Money Laundering Act (PMLA) against Frost International Ltd and its group companies like Globiz Exim Pvt Ltd, NSD Nirman Pvt Ltd and R S Builders, and their promoters and directors.
The attached immovable assets, valued at Rs 185 crore, are located in places such as Kanpur, Delhi, Gurugram, Mumbai, Kolkata and some cities in Tamil Nadu.
The federal agency had booked the accused after analysing a CBI FIR against them filed in January last year.
The ED issued a statement here, saying it has recorded 'facts, evidence and records to cogently prove that Frost International Limited and its group companies, indulged in the commission of the offence of money laundering and have diluted the proceeds of crime available with the company to various other business related and non-related entities.' 'It is also found that they diverted bank funds and used them for acquiring assets in the name of the Frost group of companies and related persons/entities,' it alleged.
The CBI, in its complaint, had alleged that the group companies were corporate guarantors of Frost International and they had allegedly defaulted in meeting payment obligation towards the lending banks of the consortium led by Bank of India.
It had claimed that the company (Frost International) and its directors, guarantors and unidentified others submitted forged documents, diverted and siphoned off the bank's funds.
(PTI)
