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ED attaches properties worth Rs 375 crore in bank fraud case

Press Trust of India  |  Ahmedabad 

The (ED) today attached various properties including land and plants worth Rs 375.71 crore of Surat-based in a

A senior of the agency said the ED registered a case against and its promoters on the basis of an FIR and charge-sheet filed by the CBI.

The FIR was registered against chairman and managing director and his son Devendra Jain, who is a joint MD of the company, he said.

allegedly obtained loans from a consortium of 13 banks led by and defaulted on repayment of these loans to the tune of Rs 2,107 crore.

"Investigations revealed that and his son Devendra entered into a criminal conspiracy...to carry out fake sales and purchases of fancy fabrics," said the

On the basis of these fake invoices, Nakoda Ltd allegedly availed of 816 Letters of Credit (LCs) from the banks.

The funds borrowed through the LCs were allegedly laundered and utilised for repayment of various loans and as a working capital to run the plant and factory.

"Thus the loans were used for purposes other than for which they had been sanctioned," the said.

The properties attached today included the company's Surat-based plant and as well as a building and a piece of land, said the official.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 21:00 IST
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