ED files prosecution complaint against 2 in bank fraud case

The Enforcement Directorate (ED) has filed a prosecution complaint against two persons for their active involvement in money laundering in the Rs 3,269.42 crore bank fraud case involving Shakti Bhog Foods Limited.

The accused, identified as Ashok Kumar Goel and Devki Nandan Garg, both entry operators, assisted Shakti Bhog Foods Limited and its directors in generation, acquisition, layering and siphoning off its loans through the shell companies under their disposal.

ED had initiated money laundering investigation on the basis of an FIR registered by the CBI against M/s Shakti Bhog Foods Limited and others, for criminal conspiracy, cheating and criminal misconduct.

“Investigation revealed that Kewal Krishan Kumar, CMD, Shakti Bhog Foods Limited (SBFL), Raman Bhuraria, CA, Devki Nandan Garg and Ashok Kumar Goel had conspired to defraud the consortium of 10 banks led by the State bank of India,” the financial probe agency said.

According to the ED, the duo was actively involved in providing fake bills to Shakti Bhog without actual business transactions.

“These fake bills facilitated inflated stock, turnover and purchase/sale of SBFL to enable it to secure enhanced credit facilities from consortium banks on the basis of thus inflated financial reports,” an official said, adding that the investigation unearthed that Devki Nandan Garg and Ashok Kumar Goel were also beneficiaries of the proceeds of crime.

In this case, the Enforcement Directorate has so far provisionally attached movable and immovable properties worth Rs 98.31 crore under the ownership of Shakti Bhog group companies and their directors/promoters, Raman Bhuraria, CA, and his wife Usha Bhuraria, among others, under Section 5(1) of the Prevention of Money Laundering Act, 2002.