New Delhi, May 9: The Enforcement Directorate (ED) has launched a significant operation in Goa, targeting a major bank fraud and money laundering case. This action is linked to the Crown Mineral Trading Corporation (CMTC) and its associates, who are accused of defrauding Canara Bank of millions.
During the raids conducted at six locations, the ED seized ₹6.75 million in cash, crucial documents related to property sales, and several digital devices. This operation was initiated based on an FIR filed by the Central Bureau of Investigation’s (CBI) Anti-Corruption Branch in Goa, following a complaint from Canara Bank. The FIR alleges that CMTC’s partners obtained a credit facility of ₹70 million from the bank’s Margoa branch using forged documents and fraudulent means.
According to the complaint, CMTC claimed to be involved in the trade of iron ore but later revealed that it had no actual business operations. The investigation also uncovered that instead of utilizing the loan for business activities, the funds were transferred to the personal bank accounts of the partners.
Additionally, to renew and maintain the cash credit limit, false annual stock statements were submitted to the bank. After failing to repay the loan, the account was declared a ‘Non-Performing Asset’ (NPA), with an outstanding amount of approximately ₹61.9 million.
A significant revelation from the ED’s investigation is that the properties mortgaged to Canara Bank were simultaneously pledged to several other banks to secure additional loans. These banks include the Central Bank of India, Indian Bank, Karnataka Bank, Bank of Baroda, and Margoa Urban Cooperative Bank. The agency estimates that this method allowed the accused to acquire around ₹100.2 million in extra loans.
The investigation also revealed that the accused prepared multiple sale deeds for the same properties under a criminal conspiracy, submitting different sets of documents to various banks. The ED states that this process aimed to conceal the proceeds of crime, alter their form, and present them as legitimate assets.
Previously, the ED had taken action under the Prevention of Money Laundering Act (PMLA), temporarily attaching assets worth approximately ₹28.6 million linked to the partners of CMTC.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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