Bank loan fraud: ED attaches assets worth Rs 166 crore to Maharashtra company

The Law Enforcement (ED) Directorate said on Thursday that it had seized assets worth Rs 166 crore in a money laundering investigation linked to an alleged bank loan fraud which has took place in Maharashtra. He said a total of 20 apartments and residential plots located in Pune, Mumbai and Ratnagiri districts of Maharashtra have been provisionally seized under the provisions of the Prevention of Money Laundering Act (PMLA) in a case. against the Varro group of industries.

The company is accused of “discounting letters of credit or LC (issued by banks) on the basis of false invoices” and the total value of the attached properties is Rs 166 crore.

The ED case was filed after considering a CBI indictment against the company and its late director Shrikant Pandurang Sawaikar and unknown Bank of India (BoI) officials and

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The federal agency said its investigation revealed that a “criminal conspiracy had been hatched by the main defendant SP Sawaikar, director of Varron Aluminum (VAPL), and his accomplices to deceive BoI into discounting 246 counterfeit notes , backed by LC, of ​​approximately Rs. 300 crore opened by Canara Bank, Deccan Gymkhana Branch in Pune on behalf of VAPL”.

“BoI negotiated and reduced the amount of said invoices to VAPL’s account after deducting its fees,” he alleged.

An amount of Rs 293 crore was credited to the account of the beneficiary company VAPL “on the basis of false insurance and false documents”.

“Part of the said loans were misappropriated and later on the due date, Canara Bank refused the issuance of the relevant LCs. The BoI did not receive the amount on the due date and thus suffered a unwarranted loss of Rs 293 crore,” the ED said.

“The money was deposited multiple times through group companies and various shell entities launched by the late SP Sawaikar and his accomplices.”

“It was discovered that the said proceeds of crime were eventually used to purchase real estate including residential apartments, land and some of these were used in Varron group companies such as Varron Aluminium, Varron Auto Comp and Varron Industries,” the ED said.

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