Bank Loan Fraud

The Enforcement Directorate on Wednesday conducted searches at multiple locations in Delhi and adjoining areas as part of an alleged bank loan fraud linked money laundering probe against former promoters of liquidated dairy major Kwality Ltd, official sources said. About a dozen places are being raided under the provisions of the Prevention of Money Laundering Act (PMLA), the sources said. The money laundering case stems from a 2020 FIR of the CBI against Kwality Ltd and its directors filed in September, 2020 for allegedly cheating a consortium of 10 banks, led by the Bank of India, for an amount over Rs 1,400 crore through alleged bloating of financial statements and diversion of loan funds. The premises of the former promoters of the company, directors and other key persons are being searched, the sources said. Kwality Ltd. started as an ice-cream manufacturing company and diversified into milk-based products. Its former directors include Sanjay Dhingra, Siddhant Gupta, Arun ...

The Enforcement Directorate Wednesday said it has "returned" assets worth more than Rs 185 crore to a State Bank of India (SBI)-led consortium of banks which were allegedly cheated through a loan fraud by a Chandigarh-based pharma company. The case pertains to Surya Pharmaceutical Ltd., undergoing liquidation currently, its directors and promoters named Rajiv Goyal and Alka Goyal who caused "wrongful loss" worth Rs 828.50 crore to the banks, it said. The ED filed a criminal case against the accused company and its promoters taking cognisance of a CBI FIR. The agency said in a statement that loan was obtained by the company using "fabricated" documents such as invoices, transport details, lorry receipts etc. for issuance of Inland Letter of Credits (ILCs) and this money was subsequently "layered and siphoned off" by Surya Pharmaceutical Ltd. using a web of bank accounts of group companies and shell entities. This caused a loss of Rs 828.50 crore to the lending banks headed by SBI, i

State-owned telecom company MTNL has defaulted on bank loan payments worth Rs 422.05 crore, a regulatory filing said on Monday. The total default amount comprises Rs 328.75 crore default on instalment of principal and Rs 93.3 crore towards interest on debt for June and July. According to the details shared by MTNL, it has defaulted on the payment of Rs 155.76 crore on debt raised from Union Bank of India, Rs 140.37 crore from State Bank of India, Rs 40.33 crore from Bank of India, Rs 40.01 crore from Punjab & Sind Bank, Rs 41.54 crore from Punjab National Bank and Rs 4.04 crore from UCO Bank. The telecom firm earlier raised Rs 5,573.52 crore in debt from these banks. The loss-making telecom firm has total borrowings of Rs 7,873.52 crore from banks and financial institutions, and the total debt of the company stands at Rs 31,944.51 crore. MTNL has sought Rs 1,151.65 crore from the government for payment of interest arising out of sovereign guarantee bonds in the current ...

Mizoram DGP Anil Shukla said the scam, involving five local car dealers, operated over four years

The Enforcement Directorate on Friday raided locations in Uttar Pradesh, Gujarat and Haryana as part of an alleged Rs 750 crore bank loan fraud linked money laundering probe against a road construction and toll plazas operating company promoted by a former UP MLA, official sources said. The search action is being taken against Gangotri Enterprises and its main promoters Vinay Shankar Tiwari, Rita Tiwari and Ajeet Pandey. These accused are alleged to have indulged into an alleged bank loan fraud of about Rs 750 crore between 2012 and 2016 against a consortium of banks led by the Bank of India, the sources said. Vinay Shankar Tiwari is the son of late former minister and strongman from Gorakhpur Hari Shankar Tiwari. He represented his father's assembly constituency of Chillupar in Gorakhpur after he was elected on a BSP ticket. He later joined the Samajwadi Party. About ten premises in Lucknow, Gorakhpur and Noida in UP, Ahmedabad (Gujarat) and Gurugram (Haryana) are being searched by

The term "pig butchering" refers to the process of fattening the victim emotionally before ultimately deceiving them financially

The court set aside the orders of the trial court and the Delhi High Court granting the brothers default or statutory bail

Private banks in FY23 accounted for 74% of amounts written off due to fraud

A land in Srinagar worth more than Rs 193 crore has been attached by the Enforcement Directorate under the anti-money laundering law as part of an investigation into a loan fraud involving the Jammu and Kashmir State Cooperative Bank (JKSCB). A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to freeze the asset, which measures 257.19 kanal and is located in the Shivpora area of Srinagar, the federal agency said in a statement. The value of the property is Rs 193.46 crore, it said. The agency, earlier this month, had arrested former JKSCB chairman Mohammad Shafi Dar and Mohammad Hilal A Mir, the chairman of the River Jhelum Cooperative House Building Society, a "fictitious firm", as part of the investigation. They are in judicial custody till December 20. The PMLA case pertains to an alleged fraud in sanctioning of a loan to the tune of Rs 250 crore (disbursement amount Rs 223 crore) in 2019 to the River Jehlum Co-operative House Building Societ

The Supreme Court on Monday sought response of former ICICI Bank CEO-cum-MD Chanda Kochhar and her businessman husband Deepak Kochhar on a plea of the CBI challenging the interim bail granted to them by the Bombay High Court in a loan fraud case. A bench of Justices Aniruddha Bose and Bela M Trivedi issued notice on the plea of the CBI and sought the response of the couple in three weeks. Additional Solicitor General SV Raju, appearing for the CBI, said the high court proceeded on a wrong presumption that offence is punishable with maximum of seven years imprisonment without considering section 409 of IPC (criminal breach of trust by public servant) which entails sentence from 10 years to life imprisonment. The bench asked Raju how section 409 of the IPC come into play when it was a private bank. Raju replied that the bank may be private but it involves public money. The bench said it is issuing notice and seeking their reply in three weeks. On January 9, the high court pulled up

Justice Trivedi asked Raju about the next date of hearing in the high court. The lawyer told the judge no fresh date has been announced yet

The CBI has conducted searches at the office of GTL Infrastructure Ltd (GTIL) in Mumbai after registering an FIR against it and unidentified officials of banks in a loan-fraud case of more than Rs 4,000 crore, officials said on Tuesday. The officials of 13 banks are under the agency's scanner for allegedly assigning Rs 3,224 crore dues of the company to an asset reconstruction firm for Rs 1,867 crore without attempting to secure their loans from collateral securities, they said. They were part of the negotiations related to the outstanding loans of GTIL, the officials said. The banks are Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of Baroda, ICICI Bank, Punjab National Bank, Oriental Bank of Commerce, Andhra Bank, Bank of India, axis Bank, State Bank of India, United Bank of India and Dena Bank, they said. The Central Bureau of Investigation (CBI) registered the case after a preliminary inquiry in which it surfaced that GTIL, promoted by Manoj Tirodkar, w

The Bombay High Court has pulled up the Punjab National Bank (PNB) for not taking steps to recover the huge amounts of money availed as loans by the fugitive diamantaire Nirav Modi.

Assets worth about Rs 124 crore that were in possession of various entities linked to the Chennai-based Surana Group of companies have been attached in connection with a money laundering investigation related to three alleged bank loan frauds worth a total Rs 3,986 crore, the Enforcement Directorate said Wednesday. A provisional order under the Prevention of Money Laundering Act (PMLA) has been issued to attach 78 immovable properties, it said in a statement. The agency had attached assets of a similar value earlier in this case and with the latest order, the total attachment in the case stands at Rs 248.98 crore. The money laundering probe stems from three CBI FIRs filed against the accused in 2020 that alleged that three Surana Group companies, along with their promoters, directors and unidentified individuals, indulged in misappropriation and criminal breach of trust, manipulation of books of accounts through fictitious entities and routing of funds through shell (dummy) ...

The scamsters would capture the contacts of victims who took the loans and extorted money from them by threatening to circulate morphed images and videos and post the images on social media

The Enforcement Directorate (ED) on Thursday said it has raided a Delhi-based rice company and its promoter, who donated about Rs 2.5 crore to a political party in the UK, as part of a money laundering probe linked to an alleged bank loan fraud of over Rs 1,200 crore. Twenty-one locations in Delhi and Gurugram of Amira Pure Foods Private Limited and its promoter Karan A Chanana were raided by the federal probe agency on May 2. The money laundering case stems from a 2020 CBI FIR that was filed against the accused on allegations of "causing wrongful loss to the tune of Rs 1,201.85 crore to the consortium of banks led by Canara Bank". "The accused entities in connivance with each other as well as other related/un-related entities have illegally diverted loan funds sanctioned by the consortium of banks by way of transferring loan funds into the accounts of various shell entities under the guise of genuine business transactions. "It was also known that Karan A Chanana had donated 250,00

The framework mandates that banks report fraud to the RBI CRILC within a week of the joint lenders' forum (JLF) declaring an account fraudulent

These types of cyber attacks are called phishing/smishing attacks, and not only the SBI, but every other banking, financial and other application customers can fall prey to it

The thing is that high-tech Chinese cyber criminals have devised a new strategy to dupe people and are defrauding Indians via fake loan applications

The account of Pratibha Industries was classified as NPA on December 31, 2017. Subsequently the accounts were also declared as fraud by the members of the consortium banks