Sign in Subscribe
Banks (Finance)

Enforcement Directorate Attaches Assets Worth Rs.81.88 Crore in Bank Fraud Case

Strategic Insights

— 1 min read

The Enforcement Directorate (ED) has attached provisionally movable and immovable assets worth Rs.81.88 crore as part of its money laundering investigation in an alleged bank fraud case against Vijay Gupta and Ajay Gupta, promoters of Vindhyavasini Group of Companies. The accused had allegedly caused a loss of Rs.764.44 crore to the State Bank of India (SBI) by availing loans and credit facilities based on forged and fabricated documents. ED's investigation revealed that the accused promoters defrauded the SBI of Rs.764.44 crores and diverted the proceeds of crime through more than 50 shell entities. Vijay Gupta was arrested on March 26 and is currently in judicial custody.

Key Takeaways:

  • The Enforcement Directorate (ED) has attached assets worth Rs.81.88 crore in an alleged bank fraud case against Vijay Gupta and Ajay Gupta, promoters of Vindhyavasini Group of Companies.
  • The accused had allegedly caused a loss of Rs.764.44 crore to the State Bank of India (SBI) by availing loans and credit facilities based on forged and fabricated documents.
  • ED's investigation found that Vijay and Ajay Gupta, in connivance with certain bank officials and chartered accountants, loan consultants, and other co-conspirators, had allegedly availed various loans and credit facilities.
  • The accused promoters defrauded the SBI of Rs.764.44 crores and diverted the proceeds of crime through more than 50 shell entities.
  • Vijay Gupta was arrested on March 26 and is currently in judicial custody.
  • The accused had also withdrawn cash worth Rs.42 crore from the loan proceeds and utilized them to acquire immovable properties in their names and in the name of their family members and benami assets.
  • The investigation is based on cases registered under various sections of the Indian Penal Code and the Prevention of Corruption Act by the Mumbai unit of Central Bureau of Investigation (CBI)'s wing investigating economic offences.

Statistics:

  • Assets attached by the Enforcement Directorate: Rs.81.88 crore
  • Loss caused to State Bank of India (SBI): Rs.764.44 crore
  • Number of shell entities used to divert proceeds of crime: over 50
  • Cash withdrawn by the accused: Rs.42 crore
  • Number of immovable properties acquired by the accused: unknown
  • Value of immovable properties acquired: unknown

Sources:

  • Enforcement Directorate (ED)
  • State Bank of India (SBI)
  • Central Bureau of Investigation (CBI)
  • Hindustan Times

Read more