The Enforcement Directorate (ED) on Wednesday said it has carried out search operations under the Prevention of Money Laundering Act (PMLA) at seven locations of Bengaluru/ Davangere (Karnataka) belonging to Bharath Infra Exports and Imports Ltd and its related entities in a bank fraud case and attached assets worth over Rs 100 crore.
Bharath Infra Exports and Imports Ltd. availed loan facilities in the form of cash credit, EPC/FBD, Non-fund based working capital and letters of credit (Inland and regular) from the State Bank of India, Bengaluru City branch. The account of the said entity was classified as Non-Performing Asset (NPA) on January 17, 2017 due to non-repayments of the bank’s dues and the outstanding was 113.38 crore.
“The investigations done by ED revealed that the promoters/directors of Bharath Infra Exports and Imports Ltd. misappropriated the credit facility availed from the State Bank of India by wrongful diversion of funds/loans to related parties, submitted forged/fabricated invoices/documents to the bank and also written off sales booked without complying with contractual obligations,” the agency said in a statement.
The investigation further revealed that Rs 101.18 crore was siphoned off by the accused with respect to 10 Letters of Credit issued to Aradhya Wire Ropes Pvt. Ltd, which got devolved and credited into the bank account of Aradhya Wire Ropes Pvt. Ltd. Subsequently, these ‘proceeds of crime’ were routed through the bank accounts of various other entities, it said.