Lucknow: The directorate of enforcement (ED), Lucknow zonal office, provisionally attached an industrial plot and three residential flats, worth Rs 6.37 crore belonging to Vinay Wire and Poly Products Private Limited and its directors in a matter related to diversion of loan funds by the compay.
The action was taken under provisions of the Prevention of Money Laundering Act (PMLA), 2002. The attached properties are situated in Ahmedabad and Kanpur.
The ED initiated an investigation into an FIR registered by CBI, SCB Lucknow, against Vinay Wire and Poly Products Pvt Ltd and its directors Vinay Kanodia, Brijesh Kanodia, Gayatri Devi Kanodia and CN Malviya in a loan fraud case involving Bank Of Baroda.
The ED investigation revealed that the company misused the loans by opening inland letters of credit in favour of related entities using fake or forged documents. The loan amount was siphoned off by the promoters and directors for purposes other than genuine business. Further, the company directors opened multiple accounts with non-lending banks in violation of the terms and conditions of the loan sanction agreement to avoid crediting the sale proceeds or debtor's realisation in the CC or loan accounts.
The Bank of Baroda declared the credit facilities sanctioned to Vinay Wire and Poly Products Pvt Ltd as NPA on April 1, 2018 and the outstanding amount on the date of NPA was Rs 18.95 crore. The Bank of Baroda later sold eight properties mortgaged by Vinay Wires for Rs 8.35 crore against the credit facilities sanctioned by the bank and recovered that amount.