ED initiated investigation for committing fraud against banks by using bogus documents. SBML has caused loss to the banks approximately of Rs220 Crore
FinTech BizNews Service
Mumbai, 26 October, 2024: Directorate of Enforcement (ED), Mumbai Zonal Office has conducted search operations on 23.10.2024 under Prevention of Money Laundering Act (PMLA), 2002 at 8 locations in Mumbai and Yamuna Nagar, Haryana as part of the ongoing probe in a bank fraud case of M/s. Sharon Bio Medicine Limited, Mohan Prasad Kala, Ms. Savita Satish Gowda, Lalit Shambu Misra and others.
During the search operations, movable assets i.e Bank funds, Demat accounts to the tune of Rs.14.53 Crore (approx.) were seized/frozen along with various other incriminating documents, digital devices and immovable property related documents. ED initiated investigation on the basis of FIR registered by CBI, ACB, Mumbai against M/s Sharon Bio Medicine Limited (SBML) and others under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 for committing fraud against banks by using bogus documents. SBML has caused loss to the banks of Rs.220 Crore (approx.)
ED investigation revealed that the SBML is a pharmaceutical company engaged in manufacturing of Active Pharmaceutical Ingredients and was availing various credit facilities from various banks using forged documents and bogus contracts. SBML allegedly mis-utilized the credit facilities of banks by diverting/siphoning of the same for creation of assets.
Further investigation/trailing of bank funds revealed that a web of shell companies were created with which initially SBML had made bogus sales and bogus purchases to inflate their turnover and also furnished such bogus contracts and forged documents with banks to avail/enhance their credit facilities. After availing the loans, funds were siphoned off through multiple layers of shell entities created in the names of employees of SBML and relatives of key persons of SBML which were diverted for creation of assets. Further investigation is under progress.
