Enforcement Directorate (ED). | Photo credit: PTI
The Kolkata regional office of the Enforcement Directorate (ED) conducted a search operation at 13 locations of Concast Steel and Power Group and seized gold and jewelery worth Rs 4.5 crore as well as eight vehicles including luxury vehicles.
The search and seizure was under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with a bank fraud case.
“The group had availed loan facilities from 11 public sector banks and five financial institutions with total defaults of ₹ 6210 crore after the company turned NPA on 30.9.2016. The ED initiated the investigation based on a complaint filed by the consortium’s lead bank SBI and an FIR registered by CBI, BSFB, Kolkata against Sanjay Sureka and others under various sections of IPC, 1860 and Prevention of Corruption Act, 1988. “, said a press release by the Directorate of Enforcement.
According to the ED, Concast Group was promoted by Sanjay Sureka and had integrated facilities from Kolkata to manufacture TMT bars including sponge iron, pig iron, mild steel, rolled products in the states of West Bengal, Odisha and Andhra Pradesh. Angle, channel, ferro alloy etc.
The Central Investigating Agency said that the borrowing company, M/s Concast Steel and Power Limited, had taken multiple letter of credit (LC) facilities from a consortium of banks which were later transferred.
“Most of these LCs were opened in the names of related parties from where funds were transferred to the accounts of group companies and individual accounts. During the search, it has been found that the promoter has created a scheme in the name of his employees, relatives and colleagues with the intention of misusing the loan amount taken from the bank’s consortium,’ the statement said.
published – December 19, 2024 at 08:57 pm IST