From Fabrics To Fabrication: Surat Firm Fakes Documents To Obtain Rs 2,107-Crore Bank Loan; ED Files PMLA Case 

The Enforcement Directorate (ED) has booked Babulal Jain, and his brother Devender Jain and 13 others for allegedly defrauding of 13 banks of Rs 2,107 crore.

The owners of Nakoda Limited had procured Rs 2,107 crore as loan from a band of 13 banks captained by Canara Bank. They, allegedly, committed the fraud through fake invoices and documents, and later defaulted on it.

“The ED has filed a prosecution complaint before Prevention of Money Laundering Act court in Mumbai against Babulal Jain, chairman, and Devender Jain, joint managing director of M/s Nakoda Limited under PMLA in the bank fraud case,” claimed a senior ED officer, reports Indian Express.

As per the probe, the Jain brothers, along with cronies Puneet Rungta and CA Jagdish Somani, conspired to orchestrate bogus sale and purchase invoices that were utilised to open 1,212 Letters of Credit (LoC) with the band of banks to avail loans.