Daijiworld Media Network - Ahmedabad

Ahmedabad, Sep 25: The Enforcement Directorate (ED), Ahmedabad, has provisionally attached movable and immovable properties worth around Rs 4.53 crore in connection with a bank fraud case involving Steel Konnect India Private Limited, the agency said on Friday.

The alleged proceeds of crime in the case have been quantified at Rs 79.56 crore.

The ED issued the Provisional Attachment Order (PAO) on August 24 under the Prevention of Money Laundering Act (PMLA), 2002.

The agency initiated the investigation based on an FIR registered by the Central Bureau of Investigation (CBI) under various provisions of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.

According to the ED, the company, through its erstwhile directors, allegedly colluded among themselves and with others to violate the sanctioned terms and conditions of loans and divert and misappropriate the loan funds.

The agency said its investigation revealed that the funds were allegedly siphoned off through cash withdrawals and transferred to sister concern companies without genuine business transactions.

The alleged diversion was part of a conspiracy that caused wrongful loss to the bank and corresponding wrongful gain to the accused, the ED said.

The agency further said the loan proceeds were allegedly routed or diverted through non-consortium bank accounts, personal accounts of the company's directors and subsidiary companies.

During the investigation, the ED conducted a detailed examination of the money trail and the utilisation of the loan funds.

Based on its findings, the ED's Ahmedabad office issued the attachment order covering movable and immovable properties valued at approximately Rs 4.53 crore.

The attachment is provisional and has been made under the PMLA in connection with the alleged laundering and diversion of funds linked to the bank fraud case.

The ED said further investigation into the matter is in progress.