The firm is accused of “reducing letters of credit or LCs (issued by banks) on the basis of counterfeit notes” and the total value of the attached properties is Rs 166 crore.

The ED has attached assets worth Rs 166 crore of the company. (File image)

The Law Enforcement Department (ED) said on Thursday it had tied assets worth Rs 166 crore in a money laundering investigation linked to suspected bank loan fraud that took place in Maharashtra.

He said a total of 20 apartments and residential land located in the Pune, Mumbai and Ratnagiri districts of Maharashtra have been provisionally attached under the provisions of the Prevention of Money Laundering Act (PMLA) in a case v Varron Group of Industries.

The firm is accused of “reducing letters of credit or LCs (issued by banks) on the basis of counterfeit notes” and the total value of the attached properties is Rs 166 crore.

The ED case was filed after investigating a CBI indictment file against the company and its director, the late Shrikant Pandurang Sawaikar, and unknown officials from the Bank of India (BoI) and Canara Bank.

The federal agency said its investigation revealed that a “criminal conspiracy was organized by the main defendant SP Sawaikar, director of Varron Aluminum Pvt Ltd (VAPL), and his accomplices to deceive BoI into discounting him. counterfeit banknotes, backed by LC, of ​​around Rs 300 crore opened by Canara Bank, Deccan Gymkhana Branch in Pune on behalf of VAPL “.

“The BoI negotiated and updated the amount of said invoices to VAPL’s account after deducting its costs,” he said.

An amount of Rs 293 crore was credited to the account of the beneficiary company VAPL “on the basis of false insurance and false documents”.

“A portion of said loans was embezzled and later on the due date Canara Bank refused to issue the relevant LCs. BoI did not obtain the amount on the due date and therefore suffered an unwarranted loss of 293 crore rupees, “the ED said.

“The money has been deposited several times through group companies and various front entities launched by the late SP Sawaikar and his accomplices.”

“It was found that said proceeds of crime were ultimately used to purchase real estate including residential apartments, land and part of it was used in Varron group companies such as Varron Aluminum Pvt Ltd, Varron Auto Comp Pvt Ltd and Varron Industries Pvt Ltd, ”says the ED.

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