Nagpur: In a case of loan fraud, the Enforcement Department (ED) has provisionally attached 12 properties of Varron Group of Industries at Nagpur, Pune, Ratnagiri and Goa worth Rs 12.80 crore.
The action was taken as part of the investigation into money laundering allegations against the company and its promoter, late S P Sawaikar.
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Thursday 03 Oct. 2024
The ED investigation is based on complaints accusing the group and Sawaikar of fraudulently discounting 246 fake invoices secured by a letter of credit opened by Canara Bank, Deccan Gymkhana Branch, Pune, in the name of M/S Varron Aluminium Pvt Ltd (VAPL) for about Rs 300 crore.
The ED claimed that there was no real movement of goods, and the amounts were diverted to payoff older loans, causing a loss to the Bank of India. The agency has also alleged that the loan proceeds were diverted for purposes other than the stated ones, and the amounts were utilized to create landed assets in the name of the promoters and also to create benami assets.
Earlier, the ED had attached proceeds of crime worth Rs 166.47 crore in the same matter on May 25, 2021, and a prosecution complaint was filed before a Prevention of Money Laundering Act (PMLA) court in Mumbai on February 6, 2023. With the latest attachment, the total attachment made by the agency in the case has now reached Rs 179.27 crore.
The provisional attachment of properties has come as a major blow to the Varron Group of Industries and its promoters. The ED has stated that its investigation into the case is ongoing, and it is committed to taking strict action against those found guilty of money laundering and other financial crimes.
