The Enforcement Directorate (ED) has apprehended the former chairperson and MD of Mandhana Industries (MIL). They were arrested in connection with a money laundering case related to a loan of 975 crores from the Bank of Baroda. Following the arrest, they were presented before the PMLA court on Friday, where they were remanded to ED custody for six days.
An extensive investigation by the ED into a money laundering case linked to a bank loan fraud involving more than 975 crores led to the arrest of the former chairperson and managing director (CMD) of a bankrupt company based in Mumbai, Purushottam Chaganlal Mandhana. The arrest of Purushottam Mandhana, the CMD of Mandhana Industries Limited, now known as GB Global Limited, occurred on Thursday. After being presented in the special PMLA court on Friday, he was sent to ED custody for six days.
Following a complaint by the Bank of Baroda about a consortium of banks being defrauded of 975.08 crores, the ED initiated an investigation based on an FIR registered by CBI's Bank Fraud & Security Branch (BSFB) against Purushottam Mandhana, Manish Mandhana, Biharilal Mandhana, and others.
The ED alleges that Mandhana Industries Limited and its directors conspired criminally to siphon off public money to cause loss to the banks through fraudulent transactions and circular trading, seeking unjust enrichment for themselves. The CBI has not yet filed a charge sheet in the case.
It is alleged by the ED that Purushottam Mandhana involved several fake institutions in the names of his employees purposefully, using such entities to launder the funds of Mandhana Industries Limited, including the loan amounts.
The ED discovered through their investigation that Purushottam carried out sham sales and purchases with several entities to maliciously defraud the banks. He also diverted funds from the accounts of Mandhana Industries Limited, including the loan money intended for paying off his personal debts and those of family members.
Revelations during the Investigation
Prior to this, the investigative agency had conducted several search operations on June 26 and July 5 in the money laundering case, unveiling various incriminating documents including property papers and several digital devices. Furthermore, the agency seized assets including gold jewelry worth nearly 3 crores, luxury cars like Lexus, Mercedes-Benz, and expensive watches from Rolex and Hublot.
