Pune Bank Loan Fraud Case: ED Seizes Assets Worth Rs 12.80 Crore
Pune, 3rd May 2023: The Enforcement Directorate (ED) has announced that it seized 12 properties worth Rs 12.80 crore in Nagpur, Pune, Ratnagiri and Goa, as part of a money laundering investigation into bank loan fraud by the Varron Group of Industries. The case involves three FIRs registered by the CBI against the Varron Group and its late promoter, S.P. Sawaikar, for a loan fraud case exceeding Rs 3,000 crore.
The ED’s investigation uncovered a scheme by S.P. Sawaikar and bank officials to fraudulently discount 246 forged bills backed by a letter of credit of Rs 300 crore opened by Canara Bank, Deccan Gymkhana Branch, Pune, on behalf of Varron Aluminium Pvt Ltd (VAPL). The goods were not actually moved, and the funds were redirected to pay off previous loans. As a result, the Bank of India suffered losses when the LCs were later devolved. Previous loans were not serviced regularly, and funds were used to create assets under the promoters’ names and benami assets.
In this matter, the ED had previously seized proceeds of crime worth Rs 166.47 crore and filed a prosecution complaint before a PMLA court in Mumbai on February 6.
