Ahmedabad, Oct 11 (IANS) Acting in a Rs 10.95 crore bank fraud case, the ED carried out searches at six locations in Ahmedabad and collected incriminating documents related to illicit fixed deposits and immovable properties, an official said on Saturday.

Apart from freezing of fixed deposits worth Rs 23 lakh, details and documents related to properties worth crores of rupees were also found during the searches, the ED official said in a statement.

The accused allegedly used bank loans for repaying housing loans of personal immovable properties, purchasing immovable properties and buying gold, the official said.

The Enforcement Directorate (ED), Ahmedabad Zonal Office, carried out searches under the provisions of the Prevention of Money Laundering Act, 2002 on Thursday and Friday in a case related to a fraud with the Oriental Bank of Commerce, the official said in the statement.

The ED initiated investigation based on an FIR registered by the Central Bureau of Investigation following a complaint filed by the bank against three firms – Shree Om Fab, Shree Baba Textile, and Shree Laxmi Fab, all proprietorship concerns owned by Ranjitkumar J. Loonia and engaged in trading of grey cloth.

Grey cloth trading involves the wholesale buying and selling of unprocessed, unfinished woven or knitted fabric, often called greige fabric, before it is dyed, bleached, or finished. This fabric is a raw material for many textile products, such as clothing and home linens.

The fraud was committed under the garb of availing cash credit facilities. The firms allegedly furnished forged documents to secure the credit facility.

The sanctioned funds were diverted for purpose of repaying housing loans of personal immovable properties, purchasing immovable properties, purchase of gold and silver bullions, and cash withdrawals. The total fraud caused to the bank is about Rs 10.95 crore, the ED statement said.

During the searches, the ED collected information regarding gold and diamond jewellery worth Rs 3 crore that were hidden by the accused in the lockers.

The federal probe agency also froze fixed deposits worth Rs 23 lakh under Section 17 of PMLA, 2002.

–IANS

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