The Enforcement Directorate (ED) on Monday said that it has arrested one Chhattisgarh based businessman Subhash Sharma, in connection with a Prevention of Money Laundering case pertaining to bank fraud of Rs 54 crore.
A senior ED official said that Sharma was arrested on Sunday evening.
The ED initiated money laundering investigation on the basis of multiple FIRs registered by Chhattisgarh Police and the CBI against Sharma and others for fraudulently obtaining loans from various banks through companies owned and controlled by him.
The total Proceeds of Crime (POC) involved in the FIRs is around Rs 54 crore. Investigations by the ED revealed that during 2009 and 2014, the loans obtained fraudulently by the companies owned and controlled by Sharma were diverted and used for investment in non-intended businesses.
A part of the Proceeds of Crime was also utilized to purchase immovable properties in the name of shell entities.
Most of the companies of Sharma did not have any business activities and were created only for the purpose of routing of loan funds received to other companies.
The ED said that an order of attaching movable and immovable properties worth Rs 39.68 crore derived out of the Proceeds of Crime has been issued. The accused was produced before the concerned court which remanded him to 10 days’ ED custody. Further investigation in the matter is underway.