Bank fraud: ED seizes jewellery, cash worth over Rs 1 cr in raids against Bhopal-based company, directors

The Enforcement Directorate has seized diamond and gold jewellery worth Rs 85 lakh and Rs 25 lakh in cash during searches against a Bhopal-based company in a multi-crore bank loan “fraud” linked money laundering case, the federal probe agency said on Friday.

The ED had raided the directors of automobile company Excel Vehicle Pvt. Ltd. and some linked persons including an auditor at four locations on November 6.

“The company diverted the funds to their sister concerns and related entities causing loss to the bank to the tune of Rs 44 crore,” the agency alleged in a statement.

The ED case, filed under the Prevention of Money Laundering Act (PMLA), stems from a CBI FIR.

The company, as per the ED, secured a credit facility of Rs 42 crore in 2014 from the Bank of India (BoI) and by 2017 the account turned NPA (non-performing asset).

In 2019, Kotak Mahindra Bank informed the BoI about the prior mortgaging of certain properties by a sister concern of Excel Vehicle Pvt. Ltd.– My Car (Bhopal)– for securing credit facilities from it (Kotak Mahindra), whereas the said properties were mortgaged with the BoI too (by Excel Vehicle Pvt.Ltd.) for securing credit facilities, it said.

The BoI subsequently declared the account “fraudulent” and reported it to the RBI.

“Funds were diverted by Excel Vehicle Pvt. Ltd. to its sister concerns and utilised for payment towards vendors of its sister concerns and in the repayment of loans of other NBFCs (non-banking financial companies) etc.,” the ED alleged.

The agency said it seized “incriminating” documents, mobile phones, diamond and gold jewellery worth Rs 85 lakh and Rs 25 lakh in cash during the raids. It did not specify what was seized from where.