The Enforcement Directorate (ED) has filed a complaint against one Gyan Prakash Sarawgi and nine others in a money laundering case related to bank loan fraud.
The prosecution complaint was filed in a PMLA Special Court in Ranchi which heard the case on June 3.
“The prosecution’s complaint was preceded by an interim seizure order dated May 25, 2020 attaching to it 10 immovable properties worth Rs 4.25 crore identified as proceeds of crime,” an official with the court said. Ed.
The case concerns a bank fraud in which the defendants fraudulently used bank loans amounting to Rs 77.36 crore under the guise of trading in textiles, garments and building articles.
After obtaining the loan amount, the defendants laundered all the money through a maze of transactions involving numerous intermediary companies and was eventually used in the activities of Sarawgi Builders and Promoters Pvt Ltd, which was mainly engaged in the sector immovable.
The ED initiated a money laundering investigation based on the three FIRs registered by the Economic Offenses Wing (EOW) of the CBI, Ranchi v. Sarawgi Builders and Promoters Pvt. Ltd and others.
The proceeds of crime in this case is Rs 77.36 crore.
Earlier, the ED had seized cash amounting to Rs 3.37 crore during the December 15, 2021 investigation into the case. In March 2022, the ED had subsequently arrested Gyan Prakash Sarawgi, director of Sarawgi Builders and Promoters Pvt Ltd.
The PMLA court had returned Sarawgi to ED custody for seven days and later he was taken into custody.
He is currently being held in Birsa Munda Central Prison, Ranchi.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)