The Enforcement Directorate on Tuesday filed a supplementary charge sheet under the Prevention of Money Laundering Act, 2002 (PMLA) against promoters of Gujarat -based pharma firm Sterling Biotech and its directors - S. Nitin Sandesara and Chetan Sandesara- in an alleged bank loan fraud case.
As per the ED, action will be initiated under Fugitive Economic Offenders Law against the directors, who are currently abroad.
The investigation revealed that the Sandersara brothers and others had manipulated figures in the balance sheets of their flagship companies and induced banks to sanction higher loans. The total amount of loan fraud as on date is Rs 8,100 crores. The fraud pertains to domestic as well as offshore branches of Indian Banks. Prosecution complaint has been filed against seven accused individuals and 184 companies, read a statement.
Prior to filing the complaint, the probe agency had arrested four persons in the case including Gagan Dhawan (Delhi based businessman), Anup Garg (Ex-Director of Andhra Bank), R.B. Dixit (Director of Sterling Biotech Ltd) and Ranjeet Malik (a frontman of Gagan Dhawan).
After obtaining loans, the brothers diverted the funds for their personal purposes including bribing of public officials and withdrew in cash amounting to Rs 140 crores. The investigation in this aspect is underway.
The inquiry further divulged that the promoters used their employee's names and got 249 shell companies incorporated. The original PAN cards, stamps, seals, Memorandum of Association and signed but blank chequebooks of the shell companies have been seized. They also rotated the funds through creating a web of corporate and accounting structure abroad including UAE, USA, UK, Mauritius, Barbados, and so on.
The Proceeds of Crime were found to be invested in the form of immovable properties purchased in the name of key persons, promoters and shell companies.
Banks have declared loans to the tune of Rs 8100 crores as fraud and Rs 13,754 crores as the total outstanding amount.
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