Enforcement Directorate Cracks Down on Rs 112.90 Crore Asset Case

The Enforcement Directorate has attached assets worth Rs 112.90 crore, including a Houston property, linked to LEEL Electricals. Promoter Bharat Raj Punj is accused of bank fraud and money laundering involving inflated financials and misleading records causing Rs 376 crore loss to banks. Overseas entities were used for crime proceeds.

The Enforcement Directorate (ED) has taken a significant step in its investigation by attaching a residential property in Houston, Texas, along with 21 other movable and immovable assets valued at Rs 112.90 crore. These assets are linked to LEEL Electricals Limited, its primary promoter Bharat Raj Punj, and other individuals.

In a development overseen by the ED's Jaipur zonal office, various assets, including land, industrial plots, residential premises, and financial accounts in India, have been seized under the Prevention of Money Laundering Act (PMLA) of 2002. The investigation revealed that these assets were beneficially controlled by the Punj family through both direct ownership and shell entities.

The case, initiated following a CBI FIR, accuses the company's leadership of a conspiracy to defraud a bank consortium led by SBI. Allegations include manipulated financial statements, leading to a staggering Rs 376 crore loss to both SBI and IDBI Bank. Further, funds were reportedly redirected through complex domestic and international networks to conceal their source and were partly converted into property for personal and business expenses.

The ED's probe indicates that the financial fraud involved falsifying company records, inflating asset values and receivable accounts, and misleading financial disclosures to continue accessing bank credit. Allegedly, the funds were funneled through Bharat Raj Punj's overseas-controlled entities, which complicated recovery efforts.

In their pursuit to reclaim the misappropriated funds and dismantle the fraudulent structure, the ED has identified that a significant share of diverted funds ended up in real estate investments under names affiliated with the Punj family. Among these is the US-based property now seized, underscoring the global reach of such financial schemes.