Bank Fraud: Ahmedabad-based company's properties worth Rs 14.50 cr seized

The Enforcement Directorate (ED) has attached properties worth Rs 14.50 crores of Ahmedabad-based M/s ABC Cotspin Pvt Ltd in a case of bank fraud worth Rs 804 crore. The agency has traced and attached two immovable properties, one situated at Regent Chambers at Nariman Point and other at Nikumbh Complex, Ahmedabad.

The agency had initiated investigations under Prevention of Money Laundering Act, 2002 (PMLA) against the company and its director Ashish Jobanputra and others. The probe was initiated after a case was registered by Central Bureau of Investigation’s (CBI) Bank Securities and Fraud Cell in Mumbai. The Cell had alleged that the company and Jobanputra had entered into a criminal conspiracy with officials of Bank of Baroda (BoB), Ahmedabad and State Bank of India (SBI), Gondal.

“It was revealed that the company was availing bill discounting facilities from the banks against Letter of Credit (LC) of prime banks. During the period 2014-15, Jobanputra, without making any genuine export, signed the export documents to SBI for discounting the bills etc and also got prepared Bills of Lading by shipping agents and presented them to SBI and BoB. The bank officials also discounted the export bills without proper scrutiny of the bills. They also discounted export bills on the basis of LC issued by Industrial and Commercial Bank of China, which was restricted. It was further revealed that the said company had siphoned off Rs 79.49 crores out of India on the pretext of false import. However, the import had never taken place. The properties have been attached against the amounts remitted outside India,” said an ED official.

He added, mastermind Jobanputra, just after the fraud, left Indian along with his family and settled in the US. Enquiries against Jobanputra are also contemplated under Fugitive Economic Offenders Ordinance, 2018.

ABC Cotspin Pvt Ltd. is a private incorporated on 21 September 2006. It is classified as a non-govt company and is registered at Registrar of Companies, Ahmedabad. Its authorised share capital is Rs 150,000,000 and its paid up capital is Rs 69,612,000. It is involved in spinning, weaving and finishing of textiles.

PROBE ON TRACKS

• Describing Jobanputra as the mastermind of the fraud, ED said that just after committing the fraud, he and his family members left India, and settled in the US.
   
• “Enquiries against Jobanputra are also contemplated under Fugitive Economic Offenders Ordinance, 2018,” ED said.