In a recent development, the Enforcement Directorate (ED) conducted raids on a Mumbai-based business group in connection with an alleged bank loan fraud and money laundering case. The raids targeted Mandhana Industries Limited, now known as GB Global Ltd., and its promoters. The case originated from a complaint filed by the Bank of Baroda, accusing the company and its directors of defrauding a consortium of banks for a total of ₹975.08 crore.
During the raids, the ED seized a significant number of assets, including luxury cars, watches, bank accounts, and lockers. More than 140 bank accounts were frozen, along with five lockers. Additionally, high-end cars such as a Mercedes Benz and a Lexus, as well as watches from brands like Rolex and Hublot, were confiscated. The ED also discovered crucial documents, including property documents, which are expected to be important evidence in the ongoing investigation.
According to the ED, Mandhana Industries Ltd. and its directors were involved in a criminal conspiracy to divert loan funds through fraudulent transactions and circular trading. They allegedly created fictitious entities in the names of company employees to layer funds through their bank accounts. Suspicious third-party transactions were made to divert funds to the accounts of the directors and their family members. The ED also uncovered instances of bogus purchases made to different entities, which provided accommodation for these fraudulent activities.
It is important to note that the ED raids were conducted based on the FIR filed by the Central Bureau of Investigation (CBI) against Mandhana Industries Ltd. and its directors. The investigation is ongoing, and the seized assets will be further examined for their connection to the alleged bank loan fraud and money laundering activities.