Bank fraud: ED raids Maharashtra-based companies, seizes cash

New Delhi, Jul 31 (PTI) The ED said on Wednesday that it seized Rs 19.50 lakh in cash following searches against a sugar factory and some other connected entities in Maharashtra as part of an alleged bank loan fraud-linked money-laundering case.

Locations in Mumbai, Karjat, Baramati and Pune of Shree Shiv Parvati Sakhar Karkhana Limited, Hitech Engineering Corporation India Private Limited and their directors such as Nandkumar Tasgaonkar, Sanjay Awate and Rajendra Ingawale were raided, the federal agency said in a statement.

It did not specify the date on which the searches were undertaken.

The Enforcement Directorate (ED) said "incriminating" documents, digital devices and Rs 19.50 lakh in cash were seized during the searches.

The money-laundering case stems from a Central Bureau of Investigation (CBI) FIR filed against Shree Shiv Parvati Sakhar Karkhana Limited, its directors and others for allegedly "falsifying the accounts, forging and fabricating documents in order to gain unlawfully".

Shree Shiv Parvati Sakhar Karkhana Limited availed of Rs 100 crore loan from the banks.

However, it "failed" to contribute its share of Rs 71.19 crore for the project, which was one of the conditions for availing the loan, the ED alleged.

Subsequently, through its directors and sister concerns such as Tasgaonkar Construction Limited, Tasgaonakar Industries Limited and its associate Hitech Engineering Corporation India Private Limited, a major part of the loan funds was "siphoned off", leading to losses to the exchequer and corresponding gains to themselves, the federal agency claimed. PTI NES SZM