Bank Fraud : The Lucknow zonal office of the Enforcement Directorate (ED) on Friday registered a case against Santosh Overseas Limited and its affiliates of around Rs. 450 crore bank fraud case, major raids were conducted at eight locations in Delhi, Uttar Pradesh and Punjab. The ED’s action is being taken under the Prevention of Money Laundering Act (PMLA), 2002. The investigation is based on a case filed by the CBI, in which Santosh Overseas Ltd was allegedly charged by a group of banks for approximately Rs. 450 crore loan is alleged to have been obtained fraudulently.
The investigation revealed that the company allegedly diverted the loan amount through shell companies, entry operators and other entities instead of directly investing in its business. This was done by creating fake invoices and circular financial transactions to hide the true source of funds.
Start searching in all places
The ED team is currently examining documents and digital evidence at the locations of the promoters of the company, their affiliates and alleged associates. According to the agency, searches are going on peacefully at all locations.
The ED alleged that the loan funds were diverted and layered through a network of shell companies, residential entry operators (hawala dealers) and companies through fake invoices and circular financial transactions.
