The Directorate of Enforcement has frozen a fixed deposit of USD 3.7 million, or approximately Rs 35.71 crore, and seized a BMW during searches linked to an alleged Rs 135-crore bank fraud involving Gajanan Gangamai Industries LLP and others.

The Enforcement Directorate conducted searches at six residential and commercial premises in Mumbai and Chhatrapati Sambhaji Nagar as part of its investigation into allegations that loan funds obtained from a bank consortium led by Bank of India were diverted and siphoned off.

ED Searches Six Premises In Maharashtra

The searches led to the freezing of a fixed deposit account holding USD 3.7 million with Indian Bank’s Singapore branch, the agency said.

The ED also seized a BMW 320LD Grand Luxury Line vehicle and recovered documents and digital devices containing material relevant to the investigation.

The action was taken in connection with an alleged fraud involving approximately Rs 135 crore, with the case focusing on Gajanan Gangamai Industries LLP, its partners and other individuals.

Probe Based On CBI FIR And Chargesheet

The ED began its investigation on the basis of an FIR and a subsequent chargesheet filed by the Central Bureau of Investigation’s Anti-Corruption Bureau in Pune, Maharashtra.

The case involves allegations of cheating, criminal conspiracy and criminal misconduct against GGI LLP, its partners and others.

According to the agency, GGI LLP had secured loans from a consortium of banks led by Bank of India. The loan accounts subsequently became non-performing assets, with outstanding dues of around Rs 135 crore.

The consortium banks later declared the accounts fraudulent, according to the ED.

ED Alleges Diversion Of Loan Funds

The agency has alleged that GGI LLP partners, including former partner Nitin Ramchandra Jadhav and others, diverted and siphoned off the loan funds.

The ED’s investigation found that the funds were allegedly moved through a complex network of transactions involving round-tripping and diversion.

According to the agency, entities were allegedly incorporated for the purpose by Nitin Jadhav, a former partner of GGI LLP, and were used to route the funds.

Funds Allegedly Routed Through Shell Entities

The diverted money was subsequently routed through multiple shell entities and entry providers before substantial amounts were withdrawn in cash, the ED said.

The agency alleged that the transactions were structured to conceal the movement and eventual use of the alleged proceeds of crime.

The searches resulted in the freezing of the USD 3.7 million fixed deposit, the seizure of the BMW and the recovery of documents and digital devices containing material relevant to the investigation.

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