ED raids Mandhana Industries in Rs 975-cr bank loan fraud case | Mumbai News

ED’s money laundering case is based on the FIR registered by CBI, Mumbai, against Mandhana Industries Ltd (now GB Global Ltd) and its directors Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana and others.

Bank of Baroda, the lead banker among a consortium of banks, had in its complaint with the CBI alleged that the accused persons defrauded the banks to the tune of Rs 975.08 crore.

As per CBI’s case, Mandhana Industries Ltd and its directors allegedly hatched a criminal conspiracy to cause loss to banks and corresponding wrongful gain to themselves by diverting loan funds through fraudulent transactions and circular trading. The CBI has not filed the chargesheet in the case yet.

ED’s investigation revealed that the various fictitious entities were incorporated by the directors of Mandhana Industires Ltd in the name of employees of the company for the purpose of layering of funds through the bank accounts of such entities.

Suspicious third-party transactions were made to divert funds to the accounts of promoter/ directors and their family members. Bogus purchases were booked against payments made to different entities providing accommodation entries, ED stated.

During the search operation, more than 140 bank accounts, five lockers and shares and securities worth Rs 5 crore were found which have been frozen.

Also three high-end cars including Lexus, Merecdes Benz; multiple expensive watches including Rolex, Hublot; large number of digital devices along with several incriminating documents have been seized, the agency said.

The searches also led to unearthing of crucial incriminating documents including numerous property documents, it added.