Sign in Subscribe
Banks (Finance)

ED Attaches Properties Worth Rs 2.8 Crore in Bank Fraud Case

Strategic Insights

— 1 min read

The directorate of enforcement (ED) has attached immovable properties worth Rs 2.8 crore in a bank fraud case against Crown Minerals Trading Corporation (CMTC) and its partners. The firm and its partners are accused of cheating Canara Bank by fraudulently obtaining a loan of Rs 7 crore, which they allegedly failed to repay. The ED investigation revealed that the partners siphoned off the loan funds and diverted them to personal and proprietary bank accounts under the guise of fake business transactions.

Key Takeaways:

  • The ED attached immovable properties worth Rs 2.8 crore, including 22 plots of land, two plots of land, and a row villa, as part of its investigation into a bank fraud case against Crown Minerals Trading Corporation (CMTC) and its partners.
  • The partners of Crown Minerals obtained a credit facility of Rs 7 crore from Canara Bank on the false pretext of conducting business in the iron ore sector, which they allegedly failed to repay.
  • The ED investigation revealed that the partners dishonestly mortgaged properties as collateral security that were already pledged with several other banks and financial institutions.
  • The attached properties were acquired from illicit funds and represent the value of the proceeds of crime (POC).
  • Crown Minerals and its partners are accused of entering into a criminal conspiracy to cheat Canara Bank by fraudulently obtaining a loan of Rs 7 crore.
  • The ED investigation is ongoing, and the agency has initiated an investigation against Crown Minerals Trading Corporation (CMTC) and its partners.

Statistics:

  • Rs 2.8 crore: The total value of the immovable properties attached by the ED in the bank fraud case.
  • Rs 7 crore: The amount of the credit facility obtained by Crown Minerals from Canara Bank on the false pretext of conducting business in the iron ore sector.
  • 22: The number of plots of land in Dharbandora belonging to partner Riyaz Shaikh that were attached by the ED.
  • 2: The number of plots of land in Cuncolim and a row villa in Fatorda belonging to managing partner Aditya Angle that were attached by the ED.

Sources:

  • The Times of India (Panaji)
  • Prevention of Money Laundering Act, 2002 (PMLA)
  • Central Bureau of Investigation (CBI)
  • Anti-Corruption Bureau

Read more