ED attaches properties worthRs1600 crore of transport firm

New Delhi: The Enforcement Directorate on Tuesday attached properties worth Rs 1609.78 crore of transport firm Siddhi Vinayak Logistics, currently embroiled in a Rs 1590 crore bank fraud case.

Issuing the provisional attachment order for 6,170 road vehicles, the ED said that it had initiated investigations under provisions of the PMLA after taking cognizance of FIRs registered by the Central Bureau of Investigation against the logistics company and its director Rupchand Baid.

The probe agency revealed that Baid had routed loans sanctioned by various banks through accounts of various related entities in a conspiracy to cheat the banks and divert the amount for personal gains.

Further investigation by the ED has revealed that funds were raised from banks in the form of loans and credit facilities under schemes like "Chalak se Malak", where loans were availed in the names of drivers and other employees of the company to purchase road vehicles.

The CBI had elleged that loans were availed by producing forged and fabricated documents in the name of drivers and employees, who were kept in the dark by the transport company.

The ED had in June 2017, attached properties worth Rs 19.6 crore of the company as part of the proceeds of crime. The probe agency further said that it is investigating and trying to locate properties acquired by the accused with the said proceeds of crime.