Enforcement Directorate (ED) has filed a prosecution complaint against former executive director of Moser Baer India Ratul Puri and others in a bank fraud case.

ED initiated investigation under Prevention of Money Laundering Act (PMLA) on the basis of Central Bureau of Investigation’s (CBI) first information report (FIR). CBI registered the case on the basis of complaint filed by Central Bank of India of cheating, using forged documents as genuine and criminal misconduct by Moser Baer India and its directors in conspiracy with unknown government employees and other private persons whereby the bank was cheated of ₹354.51 crore.

According to ED officials, loans to the tune of ₹7979.30 crores taken from various banks have been misused and misappropriated by Moser Baer India and its directors and promoters for their own use and have further been transferred in Puri’s companies of Hindustan Power Group.

The ED probe reveals, in order to avail the loan and for corporate debt restructuring, a fabricated document was submitted to the bank showing infusion of promoters’ contribution which itself had come from suspicious sources. Corporate guarantees were given to lure the banks to disburse loans to subsidiaries beyond the net worth of the company Moser Baer India.

Over a period of time, the receivables were written off and investments were shown to be diminished and written off. No efforts were made to recover the amounts. Most of the subsidiaries have an outstanding financial liability towards the banks totaling to ₹7979.30 crore.

comment COMMENT NOW