Mumbai: The ED attached immovable property worth Rs 19.12 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Rs 5,600 crore National Spot Exchange Limited (NSEL) fraud impacting 13,000 investors, an official said on Friday.
The Enforcement Directorate (ED), Mumbai Zonal Office, initiated an investigation into the case based on an FIR registered by M.R.A. Marg Police Station, Mumbai, which is being investigated by EOW, Mumbai Police, under various sections of IPC, 1860 against NSEL, its directors, key officials and 25 defaulters, said a statement.
The ED investigation under PMLA revealed that NSEL and its defaulting members indulged in criminal conspiracy, cheating and forgery by permitting trading in commodities without actual underlying stocks, thereby defrauding approximately 13,000 investors to the tune of around Rs 5,600 crore.
The ED investigation revealed that three defaulting members of NSEL, namely LOIL Overseas Foods Ltd, LOIL Continental Foods Ltd and LOIL Health Foods Ltd (collectively referred to as LOIL Group), fraudulently obtained funds against fictitious/bogus sale transactions of paddy through the NSEL platform.
That gross liability of LOIL Group of companies towards NSEL was to the tune of Rs 720.30 crore, the ED said.
The scrutiny of bank accounts established that funds amounting to approximately Rs 569.04 crore were siphoned off from NSEL settlement accounts of LOIL group entities, it said.
The investigation revealed that a substantial portion of the diverted funds was layered through various group entities, including Lakshmi Energy and Foods Limited, and utilised for the repayment of bank loans, business operations, working capital requirements, and the acquisition of immovable properties, said the statement.
During the investigation, a total of 34 Provisional Attachment Orders have been issued in the case attaching properties to the tune of nearly Rs 3,452.16 crore. Seven Prosecution Complaints have been filed against 148 accused persons before the Special Court (PMLA), which has taken cognisance of the same, the ED said.
(IANS)
