
The Enforcement Directorate (ED) has arrested two promoters of SVOGL Oil Gas and Energy Ltd., a Delhi-based oil and gas integrated services provider company, on charges of money laundering in an alleged bank fraud case of over Rs 300 crore. The arrested individuals are Prem Singhee and Padam Singhee.
Background of the Case
The money laundering case is based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against SVOGL Oil Gas and Energy Ltd., Max Tech Oil and Gas Services Pvt Ltd., their promoters Prem Singhee and Padam Singhee, and others. The promoters are accused of cheating banks for amounts of Rs 252 crore (availed from Punjab National Bank in the name of SVOGL) and Rs 65 crore (availed from Bank of India in the name of Max Tech).
Enforcement Directorate’s Investigation
The ED conducted raids in December last year at various locations in Delhi-NCR, Haryana, Chhattisgarh, and Maharashtra as part of its investigation into the case. In January, the agency provisionally attached assets worth Rs 58.82 crore in connection with the investigation. These assets were held in the name of shell companies controlled by Padam Singhee. The ED alleged that the money was transferred to various shell companies as expenses and later siphoned off by the promoters. The accused also made investments that were unrelated to the intended purposes of the bank loans.
Legal Proceedings
Prem Singhee and Padam Singhee have been taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA). They will be produced before a local court in Delhi, where the ED will seek their remand for custodial interrogation.
What is full proof formula for the Bank to give the loan to a party or Individual .For Individual the loan amount is comparatively less and mod gage is also in picture But How to stop These educated criminals to stop In my view there should be one full proof certifying Agency before giving crores of loan .
Large ticket advances must be compulsorily subjected to concurrent audit by CAs right from the day one of disbursement. These auditors also should be rotated periodically. These auditors also should be made accountable for their monthly reports. Corporates who do not co-operate with auditors must be dealt with severely. In majority cases of such swindling the problem arises only bcoz bankers could not ensure 100% verification of the end-use of money lent.
There are systems and were bypassed by bankers in the name of development of business. When loan default is evident and loss of money is evident, there is no development to banks than personal gains of bankers.