ED seizes over Rs 1 cr assets in bank fraud case

New Delhi: The Enforcement Directorate (ED) has seized diamond and gold jewellery worth Rs 85 lakh, and cash to the tune of Rs 25 lakh during searches conducted at four locations in Bhopal in a case of bank fraud allegedly committed by Excel Vehicle Pvt Ltd., its directors and others by doing diversion of funds availed from Bank of India, the agency said on Friday.
Various incriminating documents and mobile phones were also seized during these raids carried out on November 6 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002
ED's Bhopal Zonal Office has conducted search operations.
As per the agency, Excel Vehicle Pvt Ltd had diverted the funds to their sister concerns and related entities causing a loss to the bank to the tune of Rs 44 crore.
The agency initiated an investigation on the basis of First Information Report registered by the CBI under various sections of IPC, 1860 and the Prevention of Corruption Act, 1988.
ED investigation revealed that Excel Vehicle Pvt Ltd had secured a credit facility of Rs 42 crore in 2014 from Bank of India. By 2017, the account turned Non-Performing Asset.
"Further, in 2019, the Kotak Mahindra Bank also informed Bank of India about prior mortgaging of certain properties by a sister concern of Excel Vehicle Pvt Ltd such as My Car (Bhopal) for securing credit facilities from Kotak Mahindra Bank, whereas mortgaged properties were also mortgaged with Bank of India by Excel Vehicle Pvt Ltd for securing credit facilities," said the ED.
Accordingly, the Bank of India declared the account fraudulent and reported it to Reserve Bank of India.
ED investigation also revealed that funds were diverted by Excel Vehicle Pvt Ltd to its sister concerns and utilized for payment towards vendors of its sister concerns and in the repayment of loans of other Non-Banking Financial Companies.