From Fabrics To Fabrication: Surat Firm Fakes Documents To Obtain Rs 2,107-Crore Bank Loan; ED Files PMLA Case (@Direc.Of.Enforcement/Facebook)

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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement