Rs 15.67 crore Loan Fraud in Bank of Maharashtra, Loan turned NPA, ED starts investigation

The Enforcement Directorate (ED), Bhopal, has filed a Prosecution Complaint (PC) against Brij Maheshwari and others under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA), Bhopal. The court has taken cognizance of the complaint on the same day.

Background of the Case

The ED initiated an investigation based on a chargesheet filed by the Central Bureau of Investigation (CBI), New Delhi, under various sections of the Indian Penal Code (IPC), 1860. The case revolves around financial irregularities involving M/s Nava Bharat Press (Bhopal) Pvt Ltd, a company controlled by Sumeet Maheshwari and others.

Findings of the ED Investigation

• Loan Diversion: The company obtained credit facilities from the Bank of Maharashtra’s Gautam Nagar branch in Bhopal during 2004, supposedly for modernizing the press and purchasing machinery.
• Misuse of Funds: Instead of utilizing the loan for its intended purpose, the funds were diverted through multiple bank accounts linked to shell companies. These companies were registered in the names of employees of the Enbee Group of Companies, controlled by the Maheshwari family.
• Fraudulent Transactions: The investigation revealed that the Maheshwari family used corporate entities to divert the loan for repaying personal and corporate liabilities, leading to the misuse of bank funds.
• Bank Fraud: Due to the mismanagement and fraudulent use of funds, the loan account turned into a Non-Performing Asset (NPA), resulting in a financial loss of ₹15.67 crore to the Bank of Maharashtra.

ED’s Actions and Asset Attachment

• On March 30, 2024, the ED provisionally attached 10 immovable properties in Satna and Sehore (Madhya Pradesh), valued at ₹2.36 crore under the Prevention of Money Laundering Act.
• This Provisional Attachment Order (PAO) was later confirmed by the Adjudicating Authority, PMLA, New Delhi, through an order dated September 10, 2024.

The case highlights serious financial misconduct and loan fraud, with authorities continuing to take strict action against those involved in money laundering and misappropriation of public funds.