The Enforcement Directorate (ED) on Monday announced the attachment of movable and immovable properties valued at Rs 133.09 crore as part of its ongoing investigation into Concast Steel and Power Ltd (CSPL) and its promoter, Sanjay Sureka, for allegedly defrauding banks and financial institutions of Rs 6,210.72 crore.
The properties were attached by the ED’s Kolkata zonal office on Friday, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated the investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), Kolkata, which accused CSPL, its directors, and promoters of defrauding banks and financial institutions through fraudulent activities, including diversion and syphoning of funds, submission of inflated stock statements, and manipulation of balance sheets. The total fraud amounted to Rs 6,210.72 crore, excluding interest.
The agency’s investigation revealed that Sanjay Sureka systematically purchased immovable properties in the names of his relatives, employees, close associates, and shell entities under his control.
The ED stated, “It further came to light that the loan amounts obtained from banks by Sanjay Sureka were diverted through his group companies and were used to subscribe to debentures of BDG Group of companies, which were subsequently converted into equity shares.”
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Previously, properties worth Rs 612.71 crore, linked to various entities associated with CSPL, Sanjay Sureka, and Subodh Goyal, the former Chairman and Managing Director of UCO Bank, had been provisionally attached.
The ED filed a prosecution complaint on February 15, followed by a supplementary prosecution complaint on Saturday. Additionally, Sanjay Sureka and Anant Kumar Agarwal were arrested by the ED and remain in judicial custody.
The agency further noted, “Investigations have further brought to light a series of financial transactions with several companies which have been found to be involved in the layering of proceeds of crime generated by CSPL. The role of these companies, their directors and associated persons is presently under detailed examination to ascertain the full extent of their involvement in the laundering process and to trace the ultimate beneficiaries of the illicit funds.”
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