Mandhana Industries Promoter Accused of Loan Fraud, Rs 975 Crore Loss
By Rediff Money Desk, Mumbai Oct 11, 2024 17:58
ED chargesheet alleges Purushottam Mandhana diverted business loans for personal gain, causing a Rs 975 crore loss to a Bank of Baroda-led consortium. The case involves multiple entities and alleged money laundering.
Mumbai, Oct 11 (PTI) Purushottam Mandhana, promoter of Mandhana Industries, used business loans for personal benefit and caused a loss of Rs 975 crore to a Bank of Baroda-led consortium of lenders, the Enforcement Directorate has said in its charge sheet.
Observing that there was a prima facie case against Mandhana and others, a special court for Prevention of Money Laundering Act (PMLA) cases here earlier this month directed the accused to remain present in the court on November 21.
The charge sheet filed by the ED named 18 persons as accused, including Purushottam Mandhana, his wife Prema and son Priyavrat.
Special judge A C Daga took cognizance of the charge sheet on October 1, saying there was a clear, prima facie case under the PMLA.
"All accused persons appear to have been involved in this process of money laundering and ultimately tried to make tainted money untainted," the court noted and issued summons to them.
The charge sheet said that Palghar-based Mandhana Industries is into manufacturing and trading of textiles since the 1990s. It owns other firms, namely, Mahan Synthetic Textiles Private Limited, Balaji Corporation, Golden Seam Industries Private Limited and Dhumketu Finvest Private Limited, but no business was undertaken in them.
The group availed of 21 loans from various banks led by Bank of Baroda for business expansion and other purposes. Two fictitious entities were set up in the name of employees loyal to Purushottam Mandhana, but no genuine business was ever undertaken by these companies, the charge sheet said.
By inflating its turnover without actual business, the Mandhana group managed to get more credit facilities from banks, it alleged.
The bank loans were used by the Mandhana family to repay personal loans, purchase immovable properties and for stock trading among other things, the charge sheet said.
They purchased the shares of Mandhana Industries to inflate the share price, the ED claimed.
The agency had arrested both Purushottam and Priyavrat in the case. While Purushottam is now out on bail, Priyavrat is in judicial custody.
Observing that there was a prima facie case against Mandhana and others, a special court for Prevention of Money Laundering Act (PMLA) cases here earlier this month directed the accused to remain present in the court on November 21.
The charge sheet filed by the ED named 18 persons as accused, including Purushottam Mandhana, his wife Prema and son Priyavrat.
Special judge A C Daga took cognizance of the charge sheet on October 1, saying there was a clear, prima facie case under the PMLA.
"All accused persons appear to have been involved in this process of money laundering and ultimately tried to make tainted money untainted," the court noted and issued summons to them.
The charge sheet said that Palghar-based Mandhana Industries is into manufacturing and trading of textiles since the 1990s. It owns other firms, namely, Mahan Synthetic Textiles Private Limited, Balaji Corporation, Golden Seam Industries Private Limited and Dhumketu Finvest Private Limited, but no business was undertaken in them.
The group availed of 21 loans from various banks led by Bank of Baroda for business expansion and other purposes. Two fictitious entities were set up in the name of employees loyal to Purushottam Mandhana, but no genuine business was ever undertaken by these companies, the charge sheet said.
By inflating its turnover without actual business, the Mandhana group managed to get more credit facilities from banks, it alleged.
The bank loans were used by the Mandhana family to repay personal loans, purchase immovable properties and for stock trading among other things, the charge sheet said.
They purchased the shares of Mandhana Industries to inflate the share price, the ED claimed.
The agency had arrested both Purushottam and Priyavrat in the case. While Purushottam is now out on bail, Priyavrat is in judicial custody.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.89 ( 0.00)
- 69758135
- Standard Capital
- 1.26 ( -16.00)
- 55792425
- GTL Infrastructure
- 2.37 (+ 4.87)
- 50169700
- Vodafone Idea L
- 9.18 ( -1.50)
- 27130818
- Jaiprakash Power Ven
- 22.33 ( -2.45)
- 21183721
MORE NEWS
Srinivas Appointed CEO of GeM Public...
L Satya Srinivas, Additional Secretary in Department of Commerce, has been given the...
PM GatiShakti NPG Evaluates 5 Infrastructure...
The Network Planning Group (NPG) under PM GatiShakti has evaluated 5 infrastructure...
Adani Energy to Operate Kenya's Transmission Lines
Adani Energy Solutions Ltd will build and operate key electricity transmission lines in...