ED attaches assets worth near Rs 8 crore in Indore bank fraud case

Bhopal/Indore:The Indore Sub Zonal Office of the Enforcement Directorate (ED) has taken a decisive step in a high-profile financial investigation by provisionally attaching immovable properties valued at Rs 7.76 crore. This action was carried out on April 24 under the rigorous provisions of the Prevention of Money Laundering Act of 2002. The assets involved in this attachment consist of various land parcels held in the name of Ruchi Acroni Industries Limited, a firm currently operating under the name Steeltech Resources Limited. This latest move brings a renewed focus on the legal consequences of corporate financial irregularities within the region, a press release said on Tuesday. The investigation was originally launched by the agency following an FIR registered by the Central Bureau of Investigation, Anti-Corruption Branch, in Bhopal. The charges against the company include violations under the Prevention of Corruption Act and the Indian Penal Code. Allegations suggest that the entity engaged in a sophisticated scheme to defraud UCO Bank in Indore (Madhya Pradesh), resulting in a staggering wrongful loss exceeding Rs 58 crore. The company is accused of dishonestly siphoning and diverting bank funds through a series of investments in group companies and by extending loans and advances to various associate concerns. Detailed findings from the Enforcement Directorate reveal a complex pattern of financial deception. The probe indicates that credit facilities and letters of credit were obtained through the submission of forged, fabricated, and manipulated documents. These transactions lacked any genuine underlying trade activity. Once secured, the proceeds were intentionally diverted and routed through a web of interlinked entities under common ownership and control to mask their origin. The siphoned funds were systematically layered before being utilised to acquire the immovable properties now under state attachment. This is not the first time the agency has moved against the assets of this group. Previously, the Indore office had attached properties worth Rs 10.15 crore in connection with the same matter. With this latest attachment, the total value of seized assets continues to climb as authorities work to recover the proceeds of crime. The Enforcement Directorate has confirmed that further investigation into the network of transactions and associated entities remains in progress to ensure full accountability for the loss caused to the public sector bank. --IANS sktr/dpb