ED attaches 20 properties worth Rs 166 cr in bank fraud case involving this company
New Delhi: Central Government agency Enforcement Directorate (ED) has seized 20 immovable properties worth about Rs 166 crore in relation to a fraud case involving Varron Grp Industries and others in Maharashtra. The attached properties are located in Pune, Mumbai and Ratnagiri.
The ED is conducting an investigation into an FIR filed by another central government agency CBI against S P Sawaikar who served as a director of Varron Aluminium Pvt Ltd. The ED is also probing the role of certain officials of the Canara Bank and bank of of India.
Sawaikar allegedly conspired with officials of Bank of India by inducing the public sector bank to discount as many as 246 forged bills produced by Varron Aluminium. These forged bills were backed by the Letter of Credit of Rs 300 crore which was opened on purpose by Canara Bank on behalf of Varron Aluminium.
Allegedly, Rs 293 crore was credited to the bank account of Varron Aluminium on the basis of the forged bills. A large part of the monies thus received were diverted. Canara Bank, however, denied the issuance of the Letter of Credit. This even caused losses to the Bank of India.