Bank fraud: ED attaches Rs 18-cr assets of Gujarat firm

Nine wind turbine generators and land, belonging to a Gujarat-based company, worth over Rs 18 crore have been attached by the ED in connection with its probe in an alleged bank fraud case, the agency said on Wednesday.

The Enforcement Directorate case pertains to a Surat-based company Nakoda Ltd, its chairman and managing director (CMD) Babulal Gumanmal Jain, his son and joint MD Devender Babulal Jain and others.

The company, the agency said in a statement, "had availed fund-based and non-fund based financial assistance from a consortium of 13 banks led by Canara Bank and later on defaulted in repayment of loans to the tune of Rs 2,107 crore."
"These fraudulently obtained LC based funds were laundered by Nakoda Ltd through circular transactions with various firms and then utilised for re-payment of various loans including term loans, interest, banking charges and as working capital for meeting day-to-day expenses towards running its plant and factory."