MUMBAI: The Mumbai unit of the Enforcement Directorate (ED) has attached provisionally immovable assets worth around ₹79.78 crore as part of its money-laundering probe in an alleged ₹286 crore bank fraud case against pharmaceutical firm, Sharon BioMedicine Limited (SBML), and others.
It was alleged that the accused persons in the case had siphoned off bank funds for use in non-sanctioned purposes and utilised them for personal uses and purchase of assets. The assets attached by the agency included immovable assets, in the form of flats, plots, hotel and agriculture lands in Mumbai, Navi Mumbai, Satara, Raigad in Maharashtra and Dehradun, Haridwar, Pauri Garhwal in Uttarakhand, the ED said on Monday. The assets were attached via a Provisional Attachment Order under provisions of the Prevention of Money Laundering Act.
The ED initiated its investigation based on a FIR registered in 2023 by the Central Bureau of Investigation (CBI) against SBML and others, under various sections of IPC and the Prevention of Corruption Act for alleged fraud against banks causing loss of around ₹286 crore. The CBI’s case had been registered based on a complaint from the deputy general manager of the State Bank of India, Stressed Assets Management Branch, Mumbai.
The forensic audit conducted by the complainant bank revealed that the firm allegedly indulged in purchases through fictitious trading transactions to mislead the lenders into believing that it had sound financial position and eventually availed higher credit limits than it was eligible for. Further, the stock statements submitted to the lenders were also allegedly inflated to avail higher drawing power.
{{/usCountry}}The forensic audit conducted by the complainant bank revealed that the firm allegedly indulged in purchases through fictitious trading transactions to mislead the lenders into believing that it had sound financial position and eventually availed higher credit limits than it was eligible for. Further, the stock statements submitted to the lenders were also allegedly inflated to avail higher drawing power.
{{/usCountry}}ED’s investigation revealed that the then three directors of SBML had allegedly set up multiple shell companies, wherein certain employees of the firm and a few of their relatives were directors and shareholders, to which the bank funds were diverted, according to ED officials.
“The bank funds were siphoned off and utilised for personal use and purchasing various properties in the names of the directors and their relatives,” an agency official said.
Earlier, ED had conducted a search operation in the case on October 23, 2024, which resulted in the seizure and freezing of various movable assets worth around ₹16.42 crore. The total attachment and seizure in the case so far amounts to around ₹96.20 crore.
Despite attempts, the firm, Sharon BioMedicine Limited (SBML), could not be contacted for a response on ED’s action.