New Delhi, 11 September (H.S.):

The Enforcement Directorate (ED) on Thursday conducted searches at multiple locations across Bihar, Haryana, Delhi, West Bengal, Tamil Nadu, Karnataka and Telangana in connection with two cases involving alleged bank fraud and misuse of loan funds.

The ED’s Patna Zonal Office conducted searches at nine locations in Gaya, Gurugram and New Delhi under Section 17 of the Prevention of Money Laundering Act (PMLA) in a case linked to Gaya-based Ramnandi Hotels and Resorts Limited. Meanwhile, the Kolkata Zonal Office carried out searches at premises linked to promoters and related entities associated with Odisha’s ARSS Group and AMR/AMRL Group in Kolkata, Chennai, Bengaluru and Hyderabad.

In both cases, the ED is investigating alleged fraud involving bank loans, misappropriation of funds, irregularities in loan repayment and diversion of money through various transactions.

The Patna Zonal Office is investigating a bank fraud case involving Ramnandi Hotels and Resorts Limited. The company operates in Gaya and is controlled by Akhauri Gopal and his sons, Nishant and Nitesh. During the investigation, the agency found that a consortium of banks led by the Central Bank of India had extended loans of approximately Rs 85 crore to the company. Around Rs 58 crore of the loan amount was allegedly diverted elsewhere on the basis of fraudulent or forged project completion reports. The investigation has reportedly revealed that these reports were provided by the company’s chartered accountant.

According to the ED, Akhauri Gopal and members of his family had also furnished personal guarantees to the banks against the loan. Five properties had been pledged or mortgaged with Tata Motors Limited against the liabilities of another entity belonging to the group. According to the investigating agency, despite having been pledged or mortgaged, these properties were recently sold.

The sale documents allegedly showed the value of the properties at substantially lower than their actual value, while the sale proceeds were recorded as cash receipts. The ED has also raised doubts about the financial capacity of some of the buyers. According to the agency, some of them do not appear to have had the financial resources required to purchase properties of such high value. The possibility that they were benami or proxy purchasers acting on behalf of Akhauri Gopal is therefore being examined.

The ED suspects that the sale of the properties may have been intended to place them beyond the reach of potential action by the agency. The agency is examining the entire transaction, the actual value of the properties, the proceeds generated from their sale and the alleged links between the buyers and the accused.

According to the charge sheet filed by the Central Bureau of Investigation (CBI), the amount of proceeds of crime in the case has been estimated at around Rs 131.79 crore. The amount is related to the value of the non-performing asset (NPA). The ED has conducted searches at a total of nine locations in the case, including six in Gaya, two in Gurugram and one in New Delhi. The searches are being conducted under Section 17 of the PMLA, 2002.

In the second operation, the ED’s Kolkata Zonal Office conducted searches at premises belonging to promoters and related entities associated with Odisha’s ARSS Group and AMR/AMRL Group. The action is part of an investigation into allegedly fraudulent or irregular loans obtained from SREI Infrastructure Finance Limited (SIFL) and SREI Equipment Finance Limited (SEFL), followed by their alleged non-repayment.

According to the ED, searches are being conducted at premises linked to former promoters and directors of the ARSS Group and family members Anil Agarwal, Rajesh Agarwal, Sunil Agarwal and Subhash Agarwal, as well as Mahesh Kumar Reddy Althuru, a promoter associated with the AMR/AMRL Group.

According to the investigating agency, the probe covers allegations of keeping loans afloat through fresh borrowing to repay earlier loans, alleged diversion of funds, routing money from one entity to another and then back again, as well as other financial irregularities. The agency is also examining the actual purpose for which the loan proceeds were used and whether the funds were allegedly circulated among related entities.

In this case, searches have been conducted at various premises in Kolkata, Chennai, Bengaluru and Hyderabad.

---------------

Hindusthan Samachar / Jun Sarkar