ED conducts searches across NCR and Punjab in ₹988 crore bank fraud probe
The financial crimes probe agency suspects that a large portion of the money (loan) availed from the banks using LCs (letters of credit) were transferred abroad through fake transactions
The Enforcement Directorate (ED) on Wednesday carried out raids at ten locations in the national capital region (NCR) and Punjab in connection with a money laundering probe into an alleged bank fraud worth ₹988 crore, people familiar with the development said.
The raids were carried out at nine premises in the NCR and one in Jalandhar against Shilpi Cables Technologies Ltd (SCTL) under the prevention of money laundering act (PMLA). The company is accused of cheating a consortium of banks led by the IDBI Bank to the tune of ₹988 crore.
ED’s probe is based on a Central Bureau of Investigation (CBI) first information report (FIR) on the matter.
The financial crimes probe agency suspects that a large portion of the money (loan) availed from the banks using LCs (letters of credit) were transferred abroad through fake transactions.
“The role of the company managing director (MD) Manish Goel is under the scanner of the agency,” said an officer cited above.
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“Several persons being covered in the search have been office holders in M/s SCTL and have been involved in various activities like rotation of funds and infusion of cash through various dummy entities into the entities beneficially owned and controlled by Manish Goel,” the officer added.
SCTL was engaged in the business of design and manufacturing wires and cables in automobile and telecom segments.
According to a statement issued by ED in December 2024, investigation revealed that SCTL indulged in fudging books of accounts with fake sales and purchases.
“Sale and purchase involving crores of rupees were fake and mere book entries. Huge amounts receivable by the company were squared off by entering into the agreements with the dummy entities. It was further found that despite about ₹400 crore being receivable from the foreign entities in 2015-2016, the company continued supply of goods on credit to such entities so as to cheat the banks. Investigations revealed that the transactions were fake,” the statement said.
It further said many assets are acquired by the promoters in the names of shell entities.
