The Directorate for enforcement of the right facilitated the release of real estate worth about 1,000 GBP Crore to the Rei Agro Limited and Varrsana ISPAT liquidator for the purpose of restitution to applicants or the alleged banking fraud. The petitioners are primarily banks of the public sector.
On Wednesday, the Special Court allowed the release of the assets owned by Rei Agro Limited and Varrsana Ispat on their liquidator after not taking ED. The liquidator provided the obligation to comply with the conditions proposed by the agency.
The conditions are that the auction of the connected properties will be carried out in a manner that generates maximum values for victims or applicants and that the property will not be sold any related party of any of the corporate debtors, their promoters and/or directors or any other party where the beneficial ownership of the property persists, its promotors and/or/or directors.
The features are located in different parts of Haryana and Gujarat. ED was connected from 2017 to 2019, in connection with the case of alleged banking fraud to the melody of 3,871.71 crore.
Bank fraud methods
The ED probe under the Money Laundering Act is based on the first information report registered by the Central Investigation Office. It was argued that Rei Agro Limited and its directors, Sandip Jhunjhunwala, Sanjay Jhunjhunwala and others, have acquired various credit facilities/limits from 14 banks as part of the consortium and then cheated on them from 2013 to 3,871.71 Crore.
According to ED, resources were diverted using various Modus operandi, including trading in fake/false accounts; Investing in Varrsan Ispat Private Limited directly and through controlled companies; Setting higher amounts of progress of Capex provided to various shells through arbitration in very low quantities; showing higher construction costs; and arranging fake shopping or sales accounts.
“Sandip Jhunjhunwala Was Engaged in Arranging False Purchase/Sales of Invoices of Rice and Paddy Through Brokers/Dealers of Delhi for Available Diverted the Funds to the Tune of ₹ 600 Crore (Approximates) Through Kolkata-Based Shell Companies to the Accounts of Associates’ Company or companies controlled by banking channels, ”she said earlier.
Later, part of the amount of 300 GBP Crore was “seated by arbitration” against the takeover of land worth about 22 crore. “(The) also organized fake iron and steel accounts for 25 crore melody and showed it as capital expenses, but received this amount back in cash,” Ed said.
In August 2019, the total annex in this case approached 1,065,77 Crore.
Published – April 17, 2025 23:46
