Pune, March 27 (IANS) The ED has attached agricultural land worth Rs 22.51 crore situated at village Savardari, Taluka Khed, Pune, in connection with a bogus letter of credit (LC) fraud that caused a loss of Rs 56.81 crore to SBI, an official said.
The Enforcement Directorate (ED), Mumbai Zonal Office, attached the immovable property under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a money laundering case related to bank fraud committed by Topworth Pipes and Tubes Pvt Ltd (TPTPL) and others, the probe agency said in a statement.
The attached asset is held in the name of Abhay Lodha, it said.
Till date, the ED has attached total assets of Abhay Lodha and entity beneficially owned and controlled by him worth Rs 38.11 crore towards the recovery of total Proceeds of Crime amounting to Rs 56.81 crore in the hands of Abhay Lodha, the ED said.
The ED initiated an investigation based on an FIR registered by CBI, Bank Securities and Fraud Cell (BS&FC), Mumbai, against TPTPL, its Director Abhay Lodha and others for offences under various sections of IPC, 1860 and Prevention of Corruption Act, 1988.
The ED investigation revealed that TPTPL discounted 24 bills in 11 Letters of Credit from the State Bank of India in a fraudulent manner.
The State Bank of India was denied payment towards these 24 bills from the LC issuing banks because the bills were rejected by the LC issuing banks/companies, the ED said.
In this manner, wrongful loss to the tune of Rs 56.81 crore was caused to the State Bank of India due to the fraud perpetrated by Topworth Pipes and Tubes Pvt Ltd, it said.
The ED investigation revealed that TPTPL, under the direction of Abhay Narendra Lodha, fraudulently obtained funds by discounting Letters of Credit (LCs) without the actual supply of goods.
Forged invoices, fake lorry receipts and fabricated documents were submitted to banks, resulting in wrongful gain to the accused and wrongful loss to banks. In the majority of LC transactions, goods were either not supplied or only partially supplied, whereas full amounts were fraudulently realised, said the ED.
Abhay Narendra Lodha, being the key promoter and decision-maker of the Topworth Group, controlled financial operations and directed preparation of forged documents and routing of funds, the ED said.
The investigation revealed that funds obtained through fraudulent LC discounting were not utilised for intended business purposes but were diverted towards repayment of existing liabilities and routed through multiple group and shell entities, thereby layering the Proceeds of Crime.
Earlier, the ED provisionally attached assets totalling Rs 15.60 crore in this case and filed a Prosecution Complaint before the Special Court (PMLA), Mumbai.
During the investigation, immovable property in the name of Abhay Lodha was identified, and the attachment order dated March 26 was issued to seize the said immovable properties worth Rs 22.51 crore, the ED said.
--IANS
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