New Delhi: The Enforcement Directorate (ED) late Friday evening arrested the managing director of an Odisha-based company - its first arrest in an alleged bank loan fraud case involving the Anil Dhirubhai Ambani Group (ADAG).
Partha Sarathi Biswal, MD of Biswal Tradelink Pvt Ltd (BTPL), is accused of arranging a fake bank guarantee of ₹68 crore for an ADAG firm.
According to the ED, its investigation has revealed that BTPL fraudulently arranged and submitted the fake bank guarantee along with forged SBI endorsements and fabricated confirmations on behalf of Reliance Nu Bess Ltd for a tender floated by Solar Energy Corporation of India Ltd (SECI). For this, BTPL received ₹5.40 crore from Reliance Nu Bess' parent, Reliance Power Ltd, ED has alleged.
The ED carried out searches against Biswal Tradelink on Friday. Agency sources said the evidence gathered by ED confirmed the use of fake documents in the name of certain banks and fake email IDs in the name of SBI.
"Probe reveals BTPL, a small company incorporated in 2019, maintained multiple undisclosed bank accounts and carried out transactions disproportionate to its declared turnover. Many violations of the Companies Act are found," the probe agency said in a news release on Saturday. Statutory records such as books of accounts and shareholders' registers were not found at the registered address, it said, adding: "
Dummy directors are found to be used just to sign the documents."
At least seven undisclosed bank accounts of the company were found and "proceeds of crime, of crores of rupees, have been traced to these accounts", it claimed.
Biswal was produced before a Delhi court, which sent him to ED's custody till August 6.
ET was the first to report on Friday that the ED had summoned Anil Ambani for questioning in connection with its investigation into the ₹17,000 crore alleged loan fraud case. Ambani has been asked to appear before the agency on August 5.
According to the Enforcement Directorat, Biswal Tradelink ran a racket that issued fake bank guarantees to business groups.
As per the agency, the Delhi Police filed the first information report in the case based on a Reliance Nu Bess company, accusing Biswal Tradelink of cheating it by promising to arrange bank guarantees for a fee and then providing a fake bank guarantee. According to the ED, Reliance Nu Bess wrongly claimed that it was cheated. "Documentary evidence reveals that apparently the two parties acted in collusion. The directors of Biswal Tradelink were found to be previous directors of Reliance group," a senior official had told ET.
A statement issued by the Reliance Group on Friday said: "The company and its subsidiaries acted bonafidely and have been a victim of fraud, forgery and cheating conspiracy. The company has made due disclosure on this to the stock exchanges on November 7, 2024," it said.
It further said "a criminal complaint in this regard has already been lodged with the Economic Offences Wing (EOW) of Delhi Police against the third party on October 16, 2024" and that the "due process of law will follow".
Partha Sarathi Biswal, MD of Biswal Tradelink Pvt Ltd (BTPL), is accused of arranging a fake bank guarantee of ₹68 crore for an ADAG firm.
According to the ED, its investigation has revealed that BTPL fraudulently arranged and submitted the fake bank guarantee along with forged SBI endorsements and fabricated confirmations on behalf of Reliance Nu Bess Ltd for a tender floated by Solar Energy Corporation of India Ltd (SECI). For this, BTPL received ₹5.40 crore from Reliance Nu Bess' parent, Reliance Power Ltd, ED has alleged.
The ED carried out searches against Biswal Tradelink on Friday. Agency sources said the evidence gathered by ED confirmed the use of fake documents in the name of certain banks and fake email IDs in the name of SBI.
"Probe reveals BTPL, a small company incorporated in 2019, maintained multiple undisclosed bank accounts and carried out transactions disproportionate to its declared turnover. Many violations of the Companies Act are found," the probe agency said in a news release on Saturday. Statutory records such as books of accounts and shareholders' registers were not found at the registered address, it said, adding: "
Dummy directors are found to be used just to sign the documents."
At least seven undisclosed bank accounts of the company were found and "proceeds of crime, of crores of rupees, have been traced to these accounts", it claimed.
Biswal was produced before a Delhi court, which sent him to ED's custody till August 6.
ET was the first to report on Friday that the ED had summoned Anil Ambani for questioning in connection with its investigation into the ₹17,000 crore alleged loan fraud case. Ambani has been asked to appear before the agency on August 5.
According to the Enforcement Directorat, Biswal Tradelink ran a racket that issued fake bank guarantees to business groups.
As per the agency, the Delhi Police filed the first information report in the case based on a Reliance Nu Bess company, accusing Biswal Tradelink of cheating it by promising to arrange bank guarantees for a fee and then providing a fake bank guarantee. According to the ED, Reliance Nu Bess wrongly claimed that it was cheated. "Documentary evidence reveals that apparently the two parties acted in collusion. The directors of Biswal Tradelink were found to be previous directors of Reliance group," a senior official had told ET.
A statement issued by the Reliance Group on Friday said: "The company and its subsidiaries acted bonafidely and have been a victim of fraud, forgery and cheating conspiracy. The company has made due disclosure on this to the stock exchanges on November 7, 2024," it said.
It further said "a criminal complaint in this regard has already been lodged with the Economic Offences Wing (EOW) of Delhi Police against the third party on October 16, 2024" and that the "due process of law will follow".