The Enforcement Directorate has searched nine locations in Bihar, Haryana and Delhi as part of its money-laundering investigation into Ramnandi Hotels and Resorts Ltd. The agency is probing alleged diversion of bank loans, suspected forged project reports and property transactions involving assets pledged to Tata Motors. Officials have alleged that Rs 58 crore of an Rs 85 crore loan facility was diverted and that certain properties were later sold at undervalued prices. The CBI chargesheet reportedly places the alleged proceeds of crime at Rs 131.79 crore.
Ramnandi Hotels bank fraud case sees ED searches at nine locations over alleged Rs 132-crore fraud
The Enforcement Directorate has conducted raids at nine locations in Bihar, Haryana and Delhi as part of its investigation into alleged loan diversion and suspected property transfers involving Ramnandi Hotels and Resorts Ltd.
The Ramnandi Hotels and Resorts Ltd bank fraud case took a twist Friday, with the Enforcement Directorate conducting searches at nine locations in Bihar, Haryana and Delhi for alleged loan diversion and suspected transfer of assets.
ED searches locations linked to Ramnandi Hotels
Searches were carried out at six places in Gaya, two in Gurugram and one in New Delhi under the provisions of Section 17 of the Prevention of Money Laundering Act, officials said.
The action pertains to Ramnandi Hotels and Resorts Ltd (RHRL), Gaya, which officials said is owned by Akhouri Gopal and his sons, Nishant and Nitesh.
The investigation concerns allegations of misappropriation of loan funds and transfer or sale of properties in an effort to defeat possible attachment proceedings in the ongoing enforcement investigation.
Officials said that RHRL is said to have diverted Rs 58 crore of the Rs 85 crore disbursed by a consortium of banks led by the Central Bank of India.
The agency says the loans were procured by submitting fake or forged project completion reports from the company’s chartered accountant while personal guarantees of Akhouri Gopal and family members were provided.
Property transactions draw ED scrutiny
The ED officials have also identified five properties that were pledged or mortgaged to Tata Motors Ltd against the dues of a related group entity.
But the properties reportedly were sold recently, notwithstanding those outstanding pledges, prompting the agency to look into whether the sales were intended to strip away assets from potential enforcement actions.
The properties were sold at grossly undervalued prices, and sale deeds recorded the consideration as cash receipts instead of reflecting their suspected market value, the ED said.
Some of the buyers are believed to be benami or proxies of Akhouri Gopal, officials said, but those allegations are open to investigation and any legal process that may follow.
The agency believed the deals were structured to carve out the properties and prevent any coercive action, and some reported buyers were allegedly not financially capable of the deals claimed.
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CBI chargesheet puts alleged proceeds at Rs 131.79 crore
The alleged bank fraud is part of an investigation into financial institutions, corporate assets and suspected movement of proceeds related to the RHRL loan facilities.
The estimated proceeds of crime are about Rs 131.79 crore, which is the value of the non-performing assets, officials said in the CBI chargesheet.
That figure forms the financial basis for the ED’s money-laundering investigation, while the agency continues to probe the alleged diversion, property transactions and roles of persons associated with RHRL.
The recent searches are part of the ongoing probe and do not, in themselves, amount to criminal liability against the company, its promoters, buyers or other persons.
What happens next in the investigation
Investigators are expected to review documents and financial records uncovered during searches, as well as property transactions and loan-related material related to the alleged bank fraud.
The ED action is based on the underlying banking investigation, and CBI chargesheet and further proceedings will be based on the evidence collected and findings made during the ongoing probe.
The case, according to Sprouts News, demonstrates how alleged diversion of loans and subsequent transfer of assets can result in parallel financial crime investigations when lenders are faced with large non-performing assets.
Future developments are likely to involve ownership and financing of the disputed properties, alleged beneficiaries of the transactions and whether the enforcement authorities pursue attachment or prosecution.
