ED Registered Case Against Two Persons In Bank Fraud

ED registered case against two persons in bank fraud. ED action, case registered against two in bank fraud case; Know the whole matter.

The ED has registered a complaint against two persons for their active involvement in money laundering in a Rs 3,269.42 crore bank fraud case involving Shakti Bhog Foods Limited.

The accused have been identified as Ashok Kumar Goel and Devki Nandan Garg and both are entry operators.

He had helped Shakti Bhog Food Limited and its directors through shell companies to obtain and embezzle its loans.

The ED had initiated the money laundering probe on the basis of an FIR registered by the CBI against M/s Shakti Bhog Foods Limited and others for criminal conspiracy, cheating, and criminal act.

Investigation revealed that the Chairman and Managing Director of Shakti Bhog Foods Limited Kewal Krishna Kumar, Chartered Accountants Raman Bhuraria, Devki Nandan Garg, Ashok Kumar Goel.

They all had hatched a conspiracy to defraud a consortium of 10 banks headed by the State Bank of India.

According to the ED, both the accused were involved in providing fake bills to Shaktibhog without any business transaction.

The ED has so far attached movable and immovable properties worth Rs 98.31 crore in this case.

SBI conducted a forensic audit of Shaktibhog Food’s accounts earlier this year after the loan turned NPA. The fraud of the company was caught in the investigation.

Shaktibhog Food had claimed food grains worth Rs 3000 crore in 2015-16 due to insect infestation.

But it was clear from the forensic audit that nothing like this happened and the company had lied to not repay the loans of the banks.

Along with the report of the forensic audit, the SBI requested the CBI to investigate the entire matter.

After the allegations were found to be true in the initial investigation, the investigating agency registered an FIR.

After this, in June, the ED had registered a case under criminal sections of PMLA on the basis of the Central Bureau of Investigation (CBI) FIR.

The CBI had earlier this year registered an FIR against Shakti Bhog Foods Ltd for an alleged fraud of Rs 3,269 crore with a consortium of 10 banks led by the State Bank of India (SBI).

SBI had lodged a complaint against the company.

According to SBI, the directors allegedly manipulated accounts and prepared forged documents to launder people’s money.

The bank had said that the business growth of the 24-year-old company was Rs 1,411 crore in 2008, which increased to Rs 6,000 crore in 2014.

The company is engaged in the business of Flour, Wheat, Rice, biscuits, etc.