ED attaches properties worth Rs 100 crore of Bharath Infra Exports in bank fraud case, ET RealEstate

September 7, 2023

BENGALURU: Enforcement Directorate sleuths provisionally attached immovable/movable properties worth Rs 105.5 crore, including residential sites, commercial properties and a farmhouse in Bengaluru, and Rs 14.5 lakh cash of Bharath Infra Exports and Imports Ltd and others in a bank fraud case.

In a press note, ED said it initiated investigation on the basis of an FIR registered by CBI (bank securities fraud branch) against the company and its promoters/directors under sections of IPC and Prevention of Corruption Act, 1988.

The allegation was that the company was engaged in the trade of construction materials and availed cash credit limits from State Bank of India. On January 17, 2017, the entity’s cash credit account was classified as a non-performing asset due to non-repayment of the bank’s dues/outstanding of Rs 113.4 crore.

ED investigation revealed Bharath Infra Exports and Imports Ltd opened 10 letters of credit (in 2016 and 2017, and thereafter, transactions were made fraudulently to convert the non-fund-based LCs to increase fund-based cash credit availability in the bank accounts of other companies.

“Bharath Infra Exports and Imports Ltd hatched a conspiracy with Aradhya Wire Ropes Pvt Ltd, Aradhya Steel Pvt Ltd, Vedik Ispat Pvt Ltd, Bhavani Steel Corporation and Speigel Enterprises Pvt. Ltd. The funds were initially credited to the account of Aradhya Wire Ropes Pvt. Ltd and then routed through other company bank accounts and finally returned back to Bharath Infra Exports and Imports Ltd,” ED said.

  • Published On Sep 7, 2023 at 04:00 PM IST

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