ED Probes Bhopal Firm under PMLA for Inflating Turnover 100× to Avail ₹1,266 Crore from SBI
The investigation revealed that the director and his associates amassed substantial movable and immovable properties well worth over ₹300 crore, both within India and abroad
A company is being investigated by the Bhopal Zonal Office of the Directorate of Enforcement (ED) for allegedly fabricating its turnover by almost 100 times in order to secure a credit of ₹1,266.63 Crore from the State Bank of India. The ED conducted an investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 against M/s Advantage Overseas Pvt....
A company is being investigated by the Bhopal Zonal Office of the Directorate of Enforcement (ED) for allegedly fabricating its turnover by almost 100 times in order to secure a credit of ₹1,266.63 Crore from the State Bank of India.
The ED conducted an investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 against M/s Advantage Overseas Pvt. Ltd. (AOPL), a Bhopal-based firm. Besides brief details regarding the present investigation, not much information is available about the firm.
Incriminating evidence, including documents exposing a network of money laundering involving suspicious high-value immovable property transactions and benami companies, was recovered during search operations at Advantage Overseas' location, according to a report published on the ED's official website.
A First Information Report (FIR) was filed by the Central Bureau of Investigation (CBI), BSFC, New Delhi, under provisions of the Indian Penal Code, 1860 and the Prevention of Corruption Act, 1988.
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The FIR named Advantage Overseas Pvt. Ltd., its directors, related individuals and unknown public servants for criminal conspiracy, cheating and forgery. The company is alleged to have inflated its turnover by a factor of 100 to illicitly secure massive credit facilities from SBI, causing a staggering loss of ₹1,266.63 crore to the bank.
The investigation also revealed that AOPL engaged in related party transactions and siphoned off funds by extending unsecured loans to itself and its allied concerns using a network of 73 different entities. Once the funds were systematically diverted, AOPL declared itself a Non-Performing Asset (NPA), prompting SBI to initiate insolvency proceedings before the National Company Law Tribunal (NCLT).
The recovered documents reportedly confirmed that the director and his associates amassed substantial movable and immovable properties well worth over ₹300 crore, both within India and abroad.
The investigations also indicate the deliberate creation of shell companies in the names of employees and benamidars to channel laundered money into real estate and other investments.
Further investigation into the case is currently ongoing.
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