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Ahmedabad, Oct 11 (IANS) Acting in a Rs 10.95 crore bank fraud case, the ED conducted searches at six locations in Ahmedabad and collected incriminating documents related to illegal fixed deposits and immovable properties, an official said on Saturday.
Apart from seizing fixed deposits worth Rs 23 lakh, details and documents related to properties worth crores of rupees were also found during the searches, an ED official said in a statement.
The officer said the accused allegedly used bank loans to repay housing loans for personal immovable properties, purchase immovable properties and buy gold.
The Enforcement Directorate (ED), Ahmedabad zonal office, conducted searches under the provisions of the Prevention of Money Laundering Act, 2002 on Thursday and Friday in a case related to fraud with Oriental Bank of Commerce, the official said in the statement.
The ED initiated the investigation on the basis of an FIR registered by the Central Bureau of Investigation following a complaint filed by the bank against three companies – Shree Om Fab, Shree Baba Textile and Shree Lakshmi Fab, all owned by Ranjitkumar J Lunia and engaged in the business of gray fabric.
The gray fabric trade involves the wholesale buying and selling of unprocessed, incompletely woven or knitted fabric, often called greige fabric, before it is dyed, bleached or finished. This fabric is the raw material for many textile products, such as clothing and household linens.
This fraud was committed under the guise of availing cash credit facilities. The firms allegedly submitted forged documents to secure the loan facility.
The sanctioned funds were used for the purpose of repaying housing loans of individual immovable properties, purchase of immovable properties, purchase of gold and silver bullions and cash withdrawals. The ED statement said the total fraud caused to the bank is approximately Rs 10.95 crore.
During the search, ED collected information about gold and diamond jewelery worth Rs 3 crore hidden by the accused in lockers.
The federal probe agency also seized fixed deposits of Rs 23 lakh under Section 17 of the PMLA, 2002.
–IANS
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