2014 Indore Bank Fraud Case: ED Seeks Case File From EOW To Probe Money Laundering Facet

Indore (Madhya Pradesh): probing the money laundering Enforcement Directorate has asked the Economic Offences Wing to handover documents of 2014 Indore bank fraud case to look into offence the money laundering facet of the case. The loan borrowers had submitted fake documents to get Rs 3 crore loan from the bank.

In 2014, the Company’s two directors Deepak Jaiswal and Jaiprakash Singh had applied for Rs 3 crore loan from Indore-based bank. The company deals in grains, oil, and other agriculture trading.  The then bank manager Dinesh Kumar Singh helped the company to get the loan sanctioned.  The officials at probe agencies say that the company officials and the then bank manager had allegedly committed money laundering and sending money out of the country.  And to check the financial offence the ED has sought papers from EOW.

“As per the procedure, the bank guarantee was taken of around Rs 5 crore and the CC Hypothecation loan of Rs 3 crore was sanctioned by the then manager Dinesh Kumar Singh, on July 19,2014. But in 2016, the account turned into an NPA,” said an official at EOW. The bank had served the notice on the trading company but it did not get any response. A team of bank officials during inspection at the warehouse found the stock much less in comparison of the money withdrawn to purchase it. .