On November 5, 2024, the Directorate of Enforcement (ED), Chandigarh Zonal Office, carried out search operations at 11 locations in multiple cities, including Chandigarh, Baddi (Himachal Pradesh), Panchkula (Haryana), Mohali, Amritsar (Punjab), Delhi, and Ahmedabad (Gujarat). The searches were conducted in relation to two bank fraud cases involving companies from the Guglani Group: M/s Super Multicolour Printers Pvt. Ltd. and M/s Dunn Foods Pvt. Ltd.. These companies, along with their directors and promoters (Sunil Guglani, Suman Guglani, and others), are accused of causing significant financial losses to the banks.
Fraudulent Activities and Losses
The fraud resulted in wrongful losses of Rs. 125.40 crore by Super Multicolour Printers Pvt. Ltd. and Rs. 53.88 crore by Dunn Foods Pvt. Ltd.. Both companies were involved in multicolor offset printing and computer stationery businesses. The ED’s investigation is based on the FIRs (First Information Reports) filed by the Central Bureau of Investigation (CBI) against these companies and their promoters for causing a total loss of Rs. 179.28 crore to a consortium of banks. These banks include Punjab National Bank (PNB), Canara Bank, SBI, ICICI, and Central Bank of India.
How the Fraud Was Carried Out
The accused companies used forged documents and inflated financial results to obtain loans from the consortium of banks. After receiving the loans, the money was illegally diverted to other companies within the Guglani Group, including M/s Shivek Labs Limited, M/s Super Healthcare, M/s Sky Blue Papers, M/s York Polymer, and other shell companies. These transactions were disguised as sham sale/purchase deals to cover up the fraud.
Results of ED Searches
During the ED’s search operations, investigators uncovered several new bank accounts, and seized Rs. 3 lakh in cash, along with incriminating documents and digital evidence that could further help in the investigation.
Ongoing Investigation
The ED has not concluded the investigation yet, and further actions are expected. The investigation is still in progress, and the authorities are working to uncover more details about the fraudulent activities and recover the misappropriated funds. This action highlights the ED’s ongoing efforts to tackle financial crimes and hold individuals accountable for defrauding public and private banks.
