ED attaches assets worth 5 crore in bank fraud case

The Enforcement Directorate (ED) on Wednesday issued a provisional order attaching "immovable properties worth 5.11 crore belonging to Shanti Kumar Chordia, Umrao Mal Chordia and Nayantara Chordia in a bank fraud case" under the Prevention of Money Laundering Act (PMLA).

"The assets consist of four immovable properties valued at Rs 3.80 crore including three residential-cum-business houses in Jaipur and a flat located in a posh locality in Mumbai and a fixed deposit of Rs 1.31 crore in the SBI, Jaipur," said the ED in a statement.

The investigation was initiated on the basis of an FIR and charge sheet filed by the CBI against Shanti, Umrao and entities -- Vipul Gems and K V Exports.

"These entities cheated the bank and also dishonestly and fraudulently with criminal intention prevented the bank from recovering the loan amounts," it stated, adding that the bank suffered a loss of Rs 30 crore due to this.

During the investigation, ED found out that for availing credit facilities by the bank, forged and fabricated export orders were submitted by the entities.

"The amounts released were not used for business purposes but was diverted. These entities also opened new current account and transferred some of the loan advance to this account. In this way, the funds were diverted and misappropriated by these entities," the agency stated.

Earlier, the agency had attached an immovable property in the form of a residential bungalow valued Rs 1 crore in the case.