ED attaches ₹2 crore assets in bank fraud case
The firm allegedly misappropriated a nationalised bank’s funds causing it to suffer financial losses. The irregularity took place in the bank’s Ghaziabad branch.
: Enforcement Directorate (ED) on Wednesday provisionally attached two immovable properties worth ₹2.15 crore belonging to a stakeholder of a private firm under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in a bank fraud case.
The firm allegedly misappropriated a nationalised bank’s funds causing it to suffer financial losses. The irregularity took place in the bank’s Ghaziabad branch.
In a press note, ED officials said the properties attached were in Delhi and were commercial and residential in nature. They said these properties were registered in the name of Pawan Kumar Sharma, controller/manager/loan guarantor/ultimate beneficial owner of the business of M/s Govinda International.
They further informed that ED initiated investigation on the basis of various FIRs registered by CBI, Dehradun under sections of IPC,1860 and Prevention of Corruption Act, 1988 related to cheating and forgery, against Sharma and one of his relatives Keshav Joshi, the proprietor of Govinda International. They said the investigation revealed that the firm availed cash credit of ₹15 crores since March 31, 2017, from Union Bank of India, Ghaziabad. For availing the CC limit, the stock of the firm was hypothecated and given as collateral against the said credit facility, they added.
They said the accused persons committed breach of trust and sold the hypothecated goods without the knowledge of the bank. They misappropriated the money and diverted the sale proceeds for their personal gains causing wrongful financial loss to the bank. The account of the firm had turned NPA and was declared fraud by the RBI. Further investigation in the matter was still under progress.