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ED Attaches Properties Worth Rs.375 Crores of Surat Firm in Fraud Case

The Enforcement Directorate (ED) has attached the properties worth Rs. 375.71 crores of a Surat-based firm, Nakoda Ltd in a bank fraud case.

On the basis of an FIR and the charge-sheet filed by the Economic Offence wing of the Central Bureau of Investigation (CBI), the ED has registered a case against the firm along with its Chairperson and Managing Director Babulal Gumanmal Jain and his son Joint Managing Director of the company Devender Babulal Jain.

M/s Nakoda Ltd had availed fund based and non-fund based financial assistance from the consortium of 13 Banks led by the Canara Bank and later on defaulted in repayment said loans to the tune of Rs. 2107 crores.

On the strength of fake purchase invoices, M/s Nakoda Ltd opened 816 of Letters of credit (LCs) with Banks. The investigation has further revealed that out of 816 Letters of credit (LCs) fraudulently opened by M/s Nakoda Ltd with Banks against fake purchases, 202 LCs to the tune of Rs. 827.98 Crores devolved due to non-payment by M/s Nakoda Limited.

Further investigations are underway.

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