REI Agro’s Rs 10 billion will be liquidated in bank fraud case to repay victims’ assets

The Enforcement Bureau has facilitated the release of properties worth approximately Rs 1,000 crore to Rei Agro Limited and Varrsana ISPAT liquidators with the aim of returning to claimants or victims of the company’s alleged bank fraud. The claimant is mainly a public sector bank.

On Wednesday, the Special Court allowed the release of assets owned by REI Agro Limited and Varrsana ISPAT to their liquidators after ED undoubtedly. The liquidator provided a commitment that he would comply with the conditions set by the agency.

The condition is that the auction of the attached property will be carried out in a manner that generates the greatest value for the victim or claimant and that the property will not be sold to any corporate debtor, its promoter, its director, or any affiliate of any other party, in which beneficial ownership of the property remains with the corporate debtor, its promoter, its promoter and/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or/or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or or.

The characteristics discussed are located in different regions of Haryana and Gujarat. They were affiliated by ED between 2017 and 2019, in connection with suspected bank fraud cases, reaching Rs 38,717.1 million.

Bank fraud methods

The ED investigation under the “Money Laundering Prevention Act” is based on the first information report registered by the Central Bureau of Investigation. Rei Agro Limited and its directors Sandip Jhunjhunwala, Sanjay Jhunjhunwala and others allegedly obtained various credit ratings/limits from 14 banks under the alliance arrangement, and then began in 2013, defrauding them to 3,871.71.71.71.71 crore from 2013.

According to ED, the funds were transferred using various means of crime, including transactions for false/fake bills; investments in Varrsana ISPAT Private Limited directly and through controlled companies; setting up higher amounts of capital expenditure advances in very low arbitration; showing higher construction costs; and arranging forged purchase or sales bills.

“Sandip Jhunjhunwala has obtained the largest working capital limit from consortium banks through brokers/dealers/dealers in Delhi and has provided the largest working capital limit for the expected work limit of capital and allocated it to the company’s company (about 600 euros) (sold to baby strollers) (sold to Rs 600) The agency earlier claimed that he used companies controlled by the bank channel.

Later, part of it totaled Rs 3 billion was “resolved by arbitration” against the takeover of land worth approximately Rs 2.2 billion. “[The] The defendant also arranged forged iron and steel bills, reaching Rs 2.5 crore and used it as capital expenditure, but received the cash,” Ed said.

In August 2019, the total attachment in this case was close to Rs 10,6577 crore.