ED arrests Jain brothers in bank fraud case

The Enforcement Directorate on Tuesday arrested brothers Sanjay Jain and Rajeev Jain of Surya Vinayak Group of Industries in a bank fraud case worth over Rs 2,300 crore.

The ED said in a statement that the brothers had formed various companies -- Surya Vinayak Industries Ltd, SVIL Mines, Surya Vinayak Wellness Ltd, Surya Vinayak Agro Commodities Ltd -- and by fraudulently inflating their actual worth took large amounts of bank loans.

The ED said that Surya Vinayak Industries Ltd and its owners or major shareholders and directors obtained loan and credit facilities from a consortium comprising of 21 banks led by Punjab National Bank but did not repay the money.

"The resultant outstanding liability against the said company as on September 30, 2012 stands at Rs 2,066.60 crore, while a sister concern of Surya Vinayak Industries Ltd, SVIL Mines, has also taken loan from various banks worth Rs 246 crore," the agency said.

The ED said these loan amounts were diverted out of these companies, routed through many shell companies and used for buying immovable properties.

"Further, more than Rs. 500 crore have been remitted outside India to their wholly-owned subsidiaries," the agency claimed. "ED has already attached properties worth Rs 78 crore of the group and associates."

--IANS

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