One more bank loan fraud case has came infront of nation. In connection with the 354-crore bank loan fraud case allegedly involving Enforcement Directorate (ED) has summoned 25 persons, Moser Baer India Limited (MBIL) and its directors. The ED had arrested Ratul Puri, then executive director of MBIL and nephew of Madhya Pradesh Chief Minister Kamal Nath, on August 19. After completion of his six-day custodial interrogation, a city court on Monday extended his remand by four days on the ED’s request.
ED has alleged that the company and its directors forged documents to get loan from the Central Bank of India. The loan account was classified as non-performing assets in November 2014.
“The funds released by the banks for business purposes have been misused and misappropriated by MBIL and its directors/promoters for personal use and for other than sanctioned purposes,” said the ED. It is alleged that several foreign companies were incorporated for money laundering.
The ED alleges that Moser Baer had bought Blue Ray discs from Pacific International FZE, a company of Rajiv Saxena, who is an accused in the AgustaWestland VVIP chopper deal case. It had arrested Mr. Saxena after his deportation from the United Arab Emirates in January.
“The said companies belong to the accused herein, and were used for earning a profit margin and diversion of funds. The business was worth about Rs.1,492.36 crore…Midas International LLC was also to provide for bridge finance facility in case of shortfall of payments by the group to suppliers,” the ED said.
It alleges that during the first round of questioning, Mr. Puri was evasive and non-cooperative. It is conducting the probe based on an FIR recently registered by the CBI against MBIL, Mr. Puri and his parents, Deepak Puri and Nita Puri, who are the company directors.
354 cr bank loan fraud case: ED summons Moser Baer India Ltd, its Directors
