Bank fraud: ED attaches assets worth over Rs 20 crore of J-K industrialist

The Enforcement Directorate (ED) on Thursday said it has attached assets worth over Rs 20 crore of a Jammu and Kashmir-based industrialist in an alleged loan fraud case involving the Bank of India (BoI).

The attached properties are in the name of Raj Kumar Gupta and they include 44 kanals and 10 marlas of land located in Kartholi village of Samba district worth Rs 7.59 crore, and 491 kanals and 16 marlas of land in Pampore tehsil of Pulwama district that is worth Rs 12.66 crore. The total value of the attached properties is Rs 20.25 crore, it said.

The ED said in a statement that the case pertains to siphoning of BoI funds worth Rs 91.63 crore through companies linked to Gupta like Jhelum Infra Projects India Pvt Limited (Rs 39.70 crore), Jhelum Industries (Rs 33.83 crore) and I D Sood Ispat Private Limited (Rs 18.10 crore).

"The loan accounts were classified as non-performing asset on December 31, 2014," it said. The ED said its probe found that "cash of Rs 20.87 crore was withdrawn from the loan accounts and from those of various sister concerns".

"Further, funds to the tune of Rs 18.47 crore were siphoned off through accounts owned and controlled by Gupta and his family members and through bogus accounts in the name of his employees opened specifically for the purpose of siphoning off of funds of loan accounts. "The remaining funds were utilised for making payments to different individuals for non-business purposes," it said.