ED attaches assets worth Rs 6.79 cr in case involving cheating in 4 states

The Enforcement Directorate has provisionally attached immovable and movable assets to the tune of Rs 6.79 crore in the states of Odisha, Gujarat, Chhatisgarh and Rajasthan pertaining to Micro Finance Limited, Micro Leasing and Funding Limited and Micro Construction Private Limited, its directors and others in connection with a case of alleged cheating of the public by way of raising illegal public deposits.

The assets were attached under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, which include bank balances worth Rs 0.75 crore and immovable assets worth Rs 6.04 crore.

The ED initiated the investigation under the PMLA on the basis of an FIR and chargesheet filed by the Central Bureau of Investigation, Kolkata.

The ED investigation revealed that Micro Finance Limited and Micro Leasing and Funding Limited represented by its directors, had allegedly collected public deposits illegally by floating many alluring schemes and subsequently concealing the same by way of investment in properties and layering of funds into other group companies such as Micro Constructions Private Limited.

Funds were also diverted to Nandini Kalinga Dairy Limited (sister concern of Mahavir Dairy and Agro Processors Limited), AM Enterprises and Gauri Vinayak Builders and Developers Private Limited.

Earlier, ED had attached properties to the tune of Rs 218 crore belonging to Micro Finance Limited and others, which were subsequently confirmed by the Adjudicating Authority of PMLA.

ED had also subsequently filed a prosecution complaint against the company and others on August 31, 2020, and a supplementary prosecution complaint was also filed on December 26, 2022.