Ahmedabad: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has filed a prosecution complaint under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a bank fraud case against M/s Shree Om Fab and others, officials said.

The ED initiated investigation under the PMLA on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against M/s Shree Om Fab (proprietor Ranjit Loonia) and others, following a written complaint filed by Oriental Bank of Commerce. The CBI had later filed a charge sheet dated December 16, 2019 in the case.

According to the investigation, M/s Shree Om Fab, M/s Shree Baba Textile and M/s Shree Laxmi Fab, all proprietorship firms of Ranjit Loonia, were sanctioned credit facilities amounting to ₹9.95 crore, which later increased to around ₹10.9 crore including interest at the time of NPA.

Probe revealed that Ranjit Loonia allegedly entered into a criminal conspiracy with panel valuer Mayur Shah and others by submitting false business records and forged documents and by arranging inflated valuation reports of mortgaged properties to obtain higher loan limits.

The ED said the accused diverted the cash-credit funds instead of using them for genuine business purposes. The loan amount was allegedly transferred to various bank accounts without any legitimate business transactions, withdrawn in cash, used for purchase of bullion and for repayment of personal housing loans.

Earlier, the ED had conducted searches at the premises of the accused persons, which led to recovery of valuables worth approximately ₹3.67 crore.

The agency had also provisionally attached two immovable properties worth ₹53.50 lakh (present market value about ₹4.65 crore) held in the names of the accused.

Further investigation in the case is in progress, officials said. DeshGujarat