The Enforcement Directorate (ED) has provisionally attached bank balances to the tune of Rs 1.74 crore under Prevention of Money Laundering Act in its ongoing investigations regarding siphoning of funds from Bhushan Power & Steel Limited and others in a case involving bank fraud.
Earlier, a prosecution complaint had also been filed by the ED in the case against 25 accused and assets worth Rs 4420.16 crore have already been attached, taking thethe total attached proceeds of crime in the case to Rs 4421.90 crores.
The ED had initiated money laundering investigation on the basis of FIR dated April 5, 2019 filed by CBI under various sections of the Indian Penal Code and relevant provisions of Prevention of Corruption Act against BPSL and others for a criminal conspiracy amongst themselves and with unknown public servants of banks and others to cheat Banks/ Financial Institutions/ Govt. exchequer.
“Investigation by ED revealed that Mahender Kumar Khandelwal (erstwhile Resolution Professional of Bhushan Power & Steel Ltd.) in association and connivance with others by way of criminal activity related to scheduled offences had acquired proceeds of crime amounting to Rs 1,73,63,488 by way of commission from a coal supplier of BPSL,” the ED said in a statement.
The said modus operandi resulted in illegal siphoning of funds out of loans advanced to BPSL by various banks by routing the same through different bank accounts belonging to their family members/close relatives. The said proceeds of crime were projected as trading commission in the hands of family members/close relatives, who have denied having provided any goods or services to the said coal supplier, he said.