Some of the Mumbai inbound operators allegedly involved in money laundering via letterbox companies are under the radar of the Enforcement Directorate (ED ).
Said group companies had received bank loans and allegedly rerouted them via shell companies with the help of Chartered Accountants (CAs) and entry operators in Mumbai and Hyderabad and recovered said money in PCH group companies for the purpose of showing a false rosy financial health of the companies, in order to cyclically take out further loans. The entire loan fraud committed using the said tactics has caused the banks a loss of Rs 747 crore, agency officials claimed.
The ED has attached 11 properties in Hyderabad and Bangalore with a book value of Rs 6.18 crore in the credit fraud case of Balvinder Singh and his M/s PCH Group of Companies and others. Singh was arrested by the ED in February this year.
ED had initiated a money laundering investigation based on an FIR registered by CBI, EOW, Chennai in 2017. The CBI charge sheet alleged that PCH Agencies Pvt Ltd, PCH Lifestyle Pvt Ltd, Balvinder Singh and others had caused Punjab and Sind Bank in Chennai an illegitimate loss of Rs 22.15 crore by borrowing credit facilities from the bank, submitted forged documents to prove good transactions and illegally diverted the loan funds. Subsequently, two more FIRs were registered against the PCH companies by the CBI for committing more credit frauds.
“Investigations by the ED revealed that the companies of the PCH Group had taken out loans from various public and private banks and had failed to repay the said loans. The amounts received as loans were rerouted with the help of CAs and entry operators through letterbox companies in Hyderabad and “Mumbai. Loan funds have been diverted to more than 77 front companies without any goods being delivered. Some of the Mumbai entry operators involved in the case are on our radar,” an agency official said.
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Published on: Friday April 08, 2022 8:28 PM IST