Bank loan fraud: ED to file charge sheet against Sandesara brothers of Gujarat

The Enforcement Directorate (ED) will soon file a charge sheet under the anti-money laundering law against the Sandesara brothers, wanted in an over Rs 5,000 crore alleged bank loan fraud case, promoters of a Gujarat-based pharmaceutical company, officials said Monday.

The central probe agency will subsequently seek Interpol red corner notices (global arrest warrants) against the brothers and other accused based on this criminal complaint even as their exact locations remains unknown and changing-- from UAE to Nigeria, the officials said.

The charge sheet under the Prevention of Money Laundering Act (PMLA) is expected to be filed before a special court here within the next fortnight, they said.

The ED has earlier filed few charge sheets, called prosecution complaints, in this case in the past against other accused.

The agency said it had registered a PMLA case against the Sandesara brothers-- Chetan Jayantilal Sandesara and Nitin Jayantilal Sandesara-- and their Vadodara-based company Sterling Biotech Limited and others on October 27 last year, two days after a case of alleged bank fraud of Rs 5,700 crore and corruption was filed against them by the CBI.

"Loans to the tune of Rs 5,700 crore was disbursed by various banks during the years 2004-2012. Look Out Circulars (LOCs) were opened against the accused in August, 2017.

"During the course of investigation, three persons were arrested, one of them Gagan Dhawan, who was close to the power centre when the loans were sanctioned," the ED said in a statement.

It added that the agency has already attached properties worth Rs 4,703 crore and is looking for "more properties and trails for the proceeds of crime" in this case.

The ED and the CBI have booked the company, its directors-- the Sandesara brothers, Dipti Chetan Sandesara, Rajbhushan Omprakash Dixit, Vilas Joshi, chartered accountant Hemant Hathi, former director Andhra Bank Anup Garg and some unidentified persons in connection with the alleged bank fraud case.

It is alleged that the company took loans of over Rs 5,000 crore from a consortium led by Andhra Bank which had turned into non-performing assets.

As per the FIR, the total pending dues of the group of companies were Rs 5,383 crore as on December 31, 2016. The ED has taken cognisance of this FIR to file its PMLA case.