The Delhi's Patiala House Court on Monday extended the Enforcement Directorate (ED) custody of an accused in the case, Ranjit Mallik, by three days, in connection with Rs. 5,000 Crore Sterling Biotech money laundering case.
Mallik will now be produced in the court on August 16. The ED told the Delhi court that they had discovered a money trail of Rs 55 lakhs, but the accused was not cooperating and replying to questions posed in that regard.
The ED also filed an application for the cancellation of bail of another accused businessman, Gagan Dhavan, in the same case.
The ED arrested Ranjit Malik earlier in August on the suspect of delivering a bribe of Rs 25 lakh to the residence an influential person, while Dhavan was allegedly arrested for aided bank loan frauds related to a Vadodara-based company named Sterling Biotech.
The Central Bureau of Investigation (CBI) in 2017, had registered an FIR for bank loan fraud against Sterling Biotech Ltd, its group companies, its directors and others. Following the FIR, in June 2018, the CBI attached several movable and immovable properties worth more than Rs. 4,700 crores under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the investigation, the ED found that several companies promoted by the Sandesara brothers had fraudulently obtained credit facilities of more than Rs 5000 Crores from various banks, which subsequently turned into Non-Performing Assets (NPAs).
During the probe, it was revealed that the promoters set up more than 300 shell and benami companies in India and abroad to divert and misuse loan funds.
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