ED Attaches ₹9.19 Crore Assets in Sayona Colors Bank Fraud Case
The Enforcement Directorate (ED), Ahmedabad Zonal Office, has provisionally attached movable and immovable properties worth approximately ₹9.19 crore in connection with a bank fraud case involving M/s Sayona Colors Private Limited and other entities.
The attachment was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated its investigation based on an FIR registered by the Central Bureau of Investigation (CBI), BS&FB, Mumbai, against Sayona Colors Pvt Ltd (SCPL), its director Paresh D. Patel, Shamrock Chemie Pvt Ltd, its directors and others.
According to the agency, the accused entities allegedly defrauded banks of approximately ₹71.88 crore and diverted the funds to sister concerns through bogus agreements and circular transactions. The alleged transactions were also used to obtain higher credit limits from banks.
The ED investigation found that SCPL allegedly diverted loan funds towards the acquisition of properties in the names of its promoters and group entities. The agency also alleged that funds were transferred to group companies either directly or through misuse of Letter of Credit facilities.
According to the ED, the companies entered into bogus agreements and carried out fraudulent transactions based on those agreements to divert the loan proceeds.
The agency further alleged that Sayona Colors Pvt Ltd and Shamrock Chemie Pvt Ltd engaged in circular routing of funds among themselves and other group companies. These transactions allegedly created an inflated picture of financial activity and were used to induce banks to increase their credit facilities.
The properties attached in the latest Provisional Attachment Order include four agricultural lands that were allegedly acquired directly using diverted loan funds.
The attachment also covers term deposits, two industrial plots, a residential flat and equity shares held in two Demat accounts.
This is the second attachment order issued by the ED in the case. With the latest action, the total value of assets attached in the matter stands at approximately ₹9.62 crore.
News Source : Information for this article was gathered from a variety of reliable news outlets.
