ED Uncovers ₹42 Crore Financial Scam in Bhopal: Chartered Accountant's Residence Raided
Bhopal, Nov 7, 2024
ED searches five premises, including CA’s residence
Enforcement Directorate (ED) on Wednesday carried out searches at five premises in Bhopal, including that of a chartered accountant (CA) in Arera Colony, in connection with alleged financial irregularities of Rs 42 crore.
ED registered a money laundering case against a private firm and its authorities following an FIR by CBI in 2020. The CA was the firm's auditor.
CBI registered the case following allegations of financial irregularities and non-repayment of loans. The firm, which operates as an authorised dealer of a vehicle manufacturing company, secured substantial credit facilities from several financial institutions.
According to CBI sources, the case was registered after the company failed to repay a loan of Rs 42 crore sanctioned by Bank of India in 2014. The firm pledged several commercial and residential properties as collateral against the loan.
However, it allegedly defaulted on repayment, leading to the account being classified as non-performing asset (NPA) by the bank a few years later.
The properties mortgaged by the company include prime land located in Kalapani, Kolar Road, Bhopal, encompassing over 25 plots of commercial and residential diverted land. These assets were mortgaged to secure the loan, but according to Bank of India's records, the firm failed to honour the terms of loan agreement, prompting action under SARFAESI Act. In 2017, after multiple demand notices, a key person associated with the firm approached Bank of India and requested a temporary halt to operations.
This request was granted, and SARFAESI proceedings were stayed for a brief period. Meanwhile, Kotak Mahindra Bank also raised concerns over the ownership of the same properties, saying that the firm pledged the assets as collateral for a separate loan taken in 2012. The bank published a notice in 2019 regarding the mortgage, asserting its claim on the properties.
Investigation into the financial dealings of the firm gained momentum after reports surfaced that it allegedly concealed outstanding liabilities to multiple lenders. CBI's investigation focused on the alleged misrepresentation of financial documents, fraudulent activities in securing loans, and potential involvement of other individuals or entities in financial malpractices.
[The Times of India]
