ED Attaches Rs. 27.91 Lakh Property In Krishna Containers Bank Fraud Case
(Judicial Quest News Network)
The Enforcement Directorate (ED) has provisionally attached an immovable property valued at Rs. 27.91 lakh in connection with the Krishna Containers Bank Fraud Case, as part of its ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002. The attached asset, a 227-square-yard plot of land located in Singhpur Kachhar, Kanpur, Uttar Pradesh, is registered in the name of Dinesh Arora, the Managing Partner of M/s Krishna Containers.
This action follows an FIR filed by the Central Bureau of Investigation (CBI), Anti-Corruption Bureau (ACB) in Lucknow, against M/s Krishna Containers and its partners, including Dinesh Arora, Smt. Krishna Arora, and others. The charges include cheating the Bank of Baroda by misusing Letters of Credit (LCs) to siphon off funds, resulting in a loss of Rs. 32.35 crore to the bank.
ED’s investigation revealed that the accused opened 26 fraudulent Letters of Credit (LCs) for related and dummy entities such as G.P. Overseas, M.R. Traders, and Dinesh Soaps & Detergents. These transactions were based on forged documents and fictitious business activities. The proceeds from the LCs were funneled through multiple group accounts, with large sums being withdrawn in cash. In one instance, Rs. 1.03 crore from a devolved LC was routed through M.R. Traders to Dinesh Soaps & Detergents, with the entire sum withdrawn on the same day.
The ED determined that these firms were shell operations set up by the accused to launder the funds. Since the proceeds of crime were dissipated and withdrawn in cash, the ED has now attached a piece of land equivalent to the value of the laundered funds, under the provisions of PMLA, 2002.
Further investigations into the case are ongoing.
