ED Ahmedabad attaches Rs 4.53 crore assets in Steel Konnect bank fraud case

Ahmedabad: The Directorate of Enforcement (ED) here has attached movable and immovable properties worth approximately Rs 4.53 crore in connection with a bank fraud case involving M/s Steel Konnect India Private Limited.

According to the ED, the total proceeds of crime involved in the alleged misappropriation and diversion of funds by Steel Konnect India Private Limited amount to Rs 79.56 crore.

The investigation was initiated based on an FIR registered by the Central Bureau of Investigation (CBI) under various provisions of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.

During the investigation, the ED found that M/s Steel Konnect India Private Limited, through its erstwhile directors, allegedly colluded with each other and unknown persons to commit various financial irregularities. These included violations of the sanctioned terms and conditions of loans, siphoning off funds through cash withdrawals, and transferring funds to sister-concern companies without genuine business transactions.

The ED alleged that these transactions were carried out as part of a conspiracy with the intention of causing wrongful loss to the bank and securing wrongful gain for themselves, resulting in the alleged misappropriation of loan funds.

The investigation also revealed the alleged routing and diversion of loan proceeds through non-consortium bank accounts, personal accounts of the directors and subsidiary companies, among other channels.

Following an investigation into the money trail and utilisation of funds, the ED Ahmedabad issued a Provisional Attachment Order attaching movable and immovable properties valued at approximately Rs 4.53 crore.

Further investigation is underway. DeshGujarat