ED attaches four industrial units of Biotor in Vadodara

Vadodara

Sources say, Enforcement Directorate has attached Rs. 200 crore properties of Biotor industry. The property attached includes four industrial plants in Vadodara and a flat at Malbar Hill in Mumbai.

ED has taken this step in connection with Rs. 1200 crore bank loan scam.

Castor oil and byproduct makers Biotor is headquartered in Mumbai. It is owned by Rajesh, Bharat and Dinesh Kapadia.

They had taken Rs. 1200 crore loan from 12 banks including Oriental bank(Rs 100 crore), Corporation bank(Rs. 50 crore), Indian bank(Rs. 50 crore), Central bank(Rs. 50 crore), Bank of Maharashtra(Rs. 50 crore), Oriental bank(Rs. 37 crore),Axis bank(Rs. 25 crore) and IndusInd bank(Rs. 20 crore) for farmer funding.

ED had received a complaint regarding Rs. 509 crore in its Ahmedabad office. After filing a case under PMLA, ED has traced transactions of Rs. 250 crore amount. ED is presently probing Rs. 259 crore cash withdrawn from bank.

According to ED sources, the banks had launched a scheme of management and collection agent. As per this scheme, money to farmers were given through bank account of private parties. Biotor had misused this scheme to have loan from banks. The amount was deposited in agent accounts. Later the amount was transferred to cooperative bank accounts of farmers groups. Through fake identity, the amount was withdrawn in the name of farmers. However actually, the amount was going back to the company only.

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