The Enforcement Directorate on Tuesday recorded statements of Subhash Modi and Gautam Modi in a money-laundering Ranchi builder Gyan Prakash Sarawgi.
The ED arrested him on March 29 for committing fraud with several banks worth Rs 75 Crore. He was also taken on police remand where he revealed the modus operandi of the crime. During the course of the investigation, it was found that Subhash and Gautam had signed an agreement with him for the convergence of their landed property. For the said project he obtained loans from banks. Since he failed to execute the project Subhash and Gautam withdrew the contract. The ED wanted to know the terms and conditions of the contract and whether they suffered any financial loss.
Initially, it was discovered that he swindled over Rs 31.24 Crore from the Bank of India. The CBI lodged three FIRs in 2018-19 against him and his associates for defrauding the bank. Investigation revealed that accused persons had committed similar fraud with other banks which ran over Rs 75 crores.
Sarawgi and his associates formed six companies namely Sunbeam dealers Pvt. Ltd., Global Traders, Badri Kedar Udyog Pvt. Ltd, Sarawgi Builders and promoters, Sriram Comtrade Pvt. Ltd. and Dwarikadhish Udyog Pvt Ltd. They cheated Bank of India as well as United Bank of India.
Sarawgi and others approached different branches of the bank and got loans sanctioned in the name of the above-mentioned companies.
Third-party guarantors were presented before the banks against the loans and different properties both in the movable as well as immovable form were given as mortgages/collateral to the banks.
The amounts were sanctioned in the form of cash credit loans, term loans, and LC facilities. Sarawgi controlled the operations and management with the assistance of his accomplices on whose names, the loans were availed. The directors and guarantors of these companies mainly used to be their close relatives or employees of Sarawgi.
Investigation reveals that Gyan Parkash Sarawgi principally controlled the business of Sarawgi Builders and promoters Pvt. Ltd.
This company is the principal company of the Sarawgi group which is engaged in the real estate business.
It was disclosed that the bank funds of the group companies were diverted in Sarawgi Builders and promoters Pvt. Ltd. It is revealed that Gyan Prakash Sarawgi controlled the operations of the company. All the loan documents, sale-purchase documents, etc. were signed by Gyan Prakash Sarawgi. Investigation revealed that once the loans were sanctioned to the companies, the accused persons namely Gyan Prakash Sarawgi and Amit Sarawgi used to transfer them to various companies under their control and management. These bank funds were placed into several accounts of fictitious/shell companies through which they were finally pooled into the accounts of Sarawgi Builders and Promoters. Investigation reveals that the funds of the bank which were obtained for trading in textiles and garments were finally integrated into the accounts of Sarawgi Builders and promoters Pvt. ltd., which was primarily engaged in the real estate business.