ed-raids-mumbai-group-in-rs-975-crore-bank-fraud

Luxury cars such as Mercedes Benz and Lexus, as well as luxury watch brands like Rolex and Hublot, along with over 140 bank accounts and lockers, were confiscated during an ED raid on a Mumbai-based business group in connection with an alleged Rs 975 crore bank loan fraud and money laundering case.

 

The ED conducted searches against Mandhana Industries Limited (now GB Global Ltd.) and its promoters on Wednesday, as stated by the federal agency.

 

The money laundering case is linked to a CBI FIR filed against the company and its directors, Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana, and others, following a complaint filed by the Bank of Baroda. 

 

According to the statement issued on Thursday, the complaint alleges that the company defrauded a consortium of banks of Rs 975.08 crore.

 

Mandhana Industries Ltd and its directors "hatched a criminal conspiracy" to cause loss to banks and corresponding wrongful gain to themselves by "diverting" loan funds through fraudulent transactions and circular trading, it said.

 

The Enforcement Directorate (ED) has stated that the searches resulted in the discovery of important incriminating documents, including property papers. Additionally, over 140 bank accounts, as well as five lockers, and shares and securities valued at Rs 5 crore, have been frozen. 

 

The ED also mentioned that three luxury cars, such as a Lexus and a Mercedes Benz, along with several watches from brands like Rolex and Hublot, were confiscated during the raids.

 

"Various fictitious entities were incorporated by the directors of Mandhana Industries Ltd. in the name of employees of the company to layer funds through the bank accounts of such entities.

 

"Suspicious third-party transactions were made to divert funds to the accounts of promoter/directors and their family members, and bogus purchases were booked against payments made to different entities providing accommodation (hawala) entries, it was alleged.