Bank loan fraud: ED attaches Rs 10.5-crore assets of Kolkata firm promoters

Assets worth Rs 10.5 crore of the promoters of a Kolkata-based lifestyle stores chain have been attached in connection with a money laundering probe linked to an alleged bank fraud case, the ED said on Wednesday.

A provisional order for attachment of bank deposits, shares and 15 flats in Kolkata of the father-son duo of Madan Chand Jain and Gaurav Jain, directors of Bhagwati Lifestyle Pvt Ltd, has been issued under the Prevention of Money Laundering Act (PMLA).

The Enforcement Directorate said in a statement that it took over investigation in the case on the basis of a CBI charge sheet.

It is alleged that the directors of the company took loan of Rs 35 crore from SBI commercial branch in Kolkata in 2012 "on the basis of fake deeds".

 

"They opened 13-15 showrooms in eastern India under the brand name Bhagwati Lifestyle. After running the showrooms for around two years, the funds were siphoned off by diverting them to fake accounts and withdrawing them in cash," the ED charged.

Probe found, the ED claimed, that the Jains through various fake identities like Madan Chand Surana, Gaurav Kumar Surana, Vishal Kothari, Shiveik Jain and Hemant Kochar "conducted frauds" in different banks across Kolkata and Howrah.

"The frauds were conducted in an organised and well-planned manner with the help of their friends and employees," it said.

GauravJain along with his father created "multiple fake identities and obtained number of PAN cards, driving licence and voter ID cards to open more than 100 fake and fictitious bank accounts either in individual name or in the name of fake firms".

On the basis of fake identities, multiple copies of property deeds were created by the accused for the purpose of mortgaging them with the banks and taking loan, the ED said.

"Investigation revealed that frauds have been conducted in more than 15 banks across Kolkata and Howrah region by mortgaging the same properties multiple times by forging the property deeds," it alleged.