ED raids at 15 locations in five cities including Jamshedpur related to bank scam of Rs 1393 cr

Jamshedpur: The Enforcement Directorate (ED) raided 15 locations in five cities including Jamshedpur of Jharkhand in the bank scam case of Rs 1392.86 crore.

Apart from Jamshedpur, ED team has reached 15 locations in Delhi, Gurugram, Mahendragarh and Bahadurgarh and searched. CBI had exposed a bank fraud of Rs 1392.86 crore.

The investigating agency had registered an FIR in this case against nine companies including Delhi-based company Allied Strips, its three directors, and Jamshedpur-based company Hico Engineers Limited. After which ED is investigating this matter.

According to the information, Allied Stripes had taken a loan of Rs 931 crore from five banks. The loan amount was handed over to eight companies. Now the liability of banks has increased to Rs 1392.86 crore. Allied has acquired steel manufacturing company Haico Engineers Ltd. of Adityapur Industrial Area of Jamshedpur. 7.50 crores were also given to him in the name of purchasing the machine. But neither the company supplied the machine nor Allied Strips asked for the money back.

In the year 2000, Allied had taken a loan of Rs 356 crore from Canara Bank of Delhi, Rs 202 crore from UCO Bank, Rs 167 crore from Oriental Bank of Commerce (now PNB), Rs 136 crore from PNB and Rs 70 crore from Bank of Baroda. Then stopped paying EMI.

When the banks sent the notice, the directors applied in November 2012 to revise the loan amount citing the poor financial condition of the company. When the banks conducted a forensic audit, it was found that Allied Stripes had transferred the loan amount to companies which were associated with Allied.