Kutch bizman held for causing ₹149.89-cr loss to UBI

The CBI, however, had already filed a chargesheet against him and other directors of the firm on January 2023, alleging that AHPTPL and its directors cheated Union Bank of India by violating the terms and conditions of sanction of credit facilities and fraudulently diverting and misappropriating bank funds of ₹90.46 crore approximately

MUMBAI: The Enforcement Directorate (ED) on Tuesday arrested Ramchand Issrani, a 64-year-old businessman from Kutch, Gujarat, for laundering money he allegedly obtained cheating Union Bank of India, Byculla Branch of ₹149.89 crore. He was remanded in judicial custody on Thursday.

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The ED had initiated a probe against Issrani and his firm Associate High Pressure Technologies Pvt. Ltd (AHPTPL) based on a case registered by the Central Bureau of Investigation (CBI). The ED claimed that Issrani was the managing director of the company and was responsible for the overall business affairs of the company.

The CBI, however, had already filed a chargesheet against him and other directors of the firm on January 2023, alleging that AHPTPL and its directors cheated Union Bank of India by violating the terms and conditions of sanction of credit facilities and fraudulently diverting and misappropriating bank funds of ₹90.46 crore approximately.

The ED claimed that the accused firm opened various Letter of Credits (LC) to undertake the transaction with M/s Induja Traders Pvt. Ltd. However, there were no purchase transactions found with the said party as per the books of accounts. Further, the said account is settled by transferring the entire amount to the loan account of Associate Holding Pvt. Ltd.

The ED claimed that AHPTPL has failed to make any efforts to realise the export outstanding of M/s AHPTPL to the tune of US$653,341 due from firms namely M/s Zam Zam Gas (CNG), M/s Seven Star, M/s Gas Inn CNG Station and M/s Crest Resources. These firms are based in Pakistan and diverted the proceeds of crime to their related entities in Dubai and Singapore by transferring the money through Hawala/banking channels.

“AHPTPL has diverted bank funds to M/s Farouk Saudagar Darvesh and Co. Pvt. Ltd, for import of raw material for the manufacture of High Pressure CNG cylinders, without any official agreement between M/s Farouk Saudagar Darvesh and Co. Pvt. Ltd and M/s AHPTPL and the invoice value raised by M/s Farouk Saudagar Darvesh and Co. Pvt. Ltd to M/s AHPTPL, was 2 % above the invoice value of the foreign supplier which it has raised to AHPTPL,” said ED sources.