Rs 1,400 crore bank fraud: ED attaches Rs 35 crore properties of Kwality Ltd

New Delhi, Aug 14 (IANS) In fresh action in a Rs 1,400-crore bank fraud, the ED has attached immovable properties, including plant and machinery in Haryana and Rajasthan, worth Rs 35 crore belonging to erstwhile company Kwality Limited, an official said on Thursday.

The provisionally-attached properties comprise of land along with plant and machinery in Nuh, Haryana; land along with plant and machinery in Dausa, Rajasthan; and advances towards purchase of industrial land and residential plots in Mohali, the official said.

The attached properties belong to then promoters Sidhant Gupta and Sanjay Dhingra of erstwhile Kwality Limited through their family members or companies controlled by them, said the official in a statement.

The ED had earlier conducted search operations in 15 locations connected with the erstwhile promoters of Kwality Limited and seized several properties worth crores of rupees including cash amounting to Rs 1.3 crore.

Evidence related to assets and bank accounts held through several shell companies by the promoters were also seized, in addition to a Provisional Attachment Order issued earlier for Rs 450 crore.

The ED initiated investigations in the fraud on the basis of an FIR registered by the CBI, New Delhi, against Gupta and Dhingra of erstwhile Kwality Limited for cheating the banks.

Kwality Limited, was engaged in processing, and trading of milk, ice creams and various dairy products.

The FIR alleged that Kwality Limited through the erstwhile directors indulged in falsification and fabrication of books of accounts by misrepresentation of sales, purchases, debtors and creditors and thereby cheated the consortium of banks. As per the FIR, the bank fraud committed is to the tune of Rs 1,400.62 crore.

The federal agency’s investigation revealed that the then promoters/directors fudged the books of accounts to show higher sales and debtors.

Huge amounts of trading (sales/purchase) were made without actual physical deliveries or receipt of the goods at factory premises, the statement said.

It was also noticed that sham companies/firms operated through implanted/dummy owners were used to divert the bank funds, it said.

The funds diverted through the stated modus operandi were circulated, layered so as to conceal their origin and routed to different accounts on the instructions of the promoters for purposes not sanctioned by the banks, the ED said.

--IANS

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