Bank loan fraud: ED attaches over Rs 52-cr assets of Rajasthan firm

Assets worth over Rs 52 crore of a Rajasthan-based company have been attached under the anti-money laundering law in an alleged bank loan fraud case, the ED said on Wednesday. The properties belong to Vikas WSP Ltd, a firm based in the state's Sriganganagar district, and its directors B D Agarwal and Bimla Devi, it said.

The Enforcement Directorate (ED) said a provisional order has been issued under the Prevention of Money Laundering Act (PMLA) for attaching 27 agricultural and industrial lands, and plant and machinery located in Sriganganagar and Bikaner districts. The total value of the attached properties is Rs 52.21 crore.

The ED case is based on a Central Bureau of Investigation (CBI) FIR against the company, its directors and officials of the State Bank of Bikaner and Jaipur (now SBI). During the investigation it was found that Vikas WSP Ltd availed export packing credit (EPC) facility from the bank on the basis of "fake or forged letters of credit (LCs)" and submitted "fake bills" to substantiate its claim before the bank, the ED said in a statement.

"The bank later extended EPC to the company by negotiating 245 export bills against fake LCs under the foreign banking negotiating letter of credit (FBNLC) scheme and also purchased 36 foreign bills under the FBP scheme, including 70 exports bill canceled by the port authorities for various reasons," it said. Vikas WSP Ltd had availed EPC on consignments of exported goods, which were either not manufactured during the relevant time or were lying in the company's factory, by presenting fake bills of lading as proof of export, the ED alleged.

The EPC availed by the company was further used in the purchase of immovable properties as well as meeting expenditure of day to day business, the central agency charged indicating the loan amount was diverted for alleged illegal purposes.

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