Jaipur, Sep 11
In fresh action in a Rs 17.5 crore bank loan fraud by a company, the ED conducted searches at seven residential and business premises at Jaipur and seized Rs 10 lakh cash and incriminating documents, said an official on Thursday.
The searches were carried out in connection with a bank loan fraud case under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, he said.
The investigation by the ED and the search operation revealed that RPPPL, which was engaged in the manufacturing and selling of electric cables, fraudulently obtained enhanced credit facilities from Bank of Maharashtra by submitting inflated stock/sales figures and false certificates regarding the issue of bonus shares, certified by a chartered accountant.
The directors diverted funds through unauthorised accounts, depleted hypothecated stocks, and misrepresented material facts in pursuance of a criminal conspiracy, said the ED