ED files prosecution complaint against Anil Nutrients in bank fraud case

The Enforcement Directorate (ED) has filed a prosecution complaint against city-based Anil Nutrients Ltd, its director Amol Shripal Sheth and six others in connection with a money laundering case linked to an alleged fraud of Rs 47.88 crore involving Bank of India, officials said on Friday.

According to a release issued by the ED’s Ahmedabad Zonal Office, the prosecution complaint (chargesheet) has been filed as part of an investigation into the alleged diversion and siphoning of bank funds by the company and its directors.

The agency said its money laundering probe was initiated on the basis of a First Information Report registered by the Central Bureau of Investigation (CBI) against the company and others for alleged cheating, criminal conspiracy and offences punishable under the Prevention of Corruption Act.

Following completion of its investigation, the CBI had earlier filed a chargesheet against Amol Shripal Sheth, the managing director of Anil Nutrients Ltd, and seven others under Sections 120-B and 420 of the IPC before the court of the Additional.

Chief Judicial Magistrate (CBI) in Ahmedabad. The ED said its investigation revealed that Anil Nutrients Ltd and its director, Amol Shripal Sheth, had defrauded Bank of India to the tune of Rs 47.88 crore by diverting and siphoning off funds to sister concern companies without any genuine business transactions.

According to the agency, the alleged diversion of funds was carried out in pursuance of a “well knitted conspiracy” in which sham transactions were created to transfer large amounts of money to sister companies.

“By routing funds through such transactions, the turnover of the group companies was artificially inflated while bank loans were obtained with the alleged dishonest intention of causing wrongful loss to the bank and wrongful gain to themselves,” the ED said.

Investigators found that large loans taken from banks were diverted and siphoned off on the basis of bogus and sham transactions, the release said.

As part of the probe under the Prevention of Money Laundering Act (PMLA), the ED carried out search operations at premises linked to Sheth and other persons associated with the Anil Group of companies and found crucial evidence relating to properties that had not been mortgaged with banks. Earlier, during the investigation, the ED had also provisionally attached immovable assets worth Rs 5.39 crore in connection with the case.

According to the agency, the attached properties represent proceeds of crime and include two agricultural lands held in the name of Amol Sheth.