New Delhi, February 14
Directorate of Enforcement (ED) has attached properties worth Rs. 210.07 crores under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the case against Concast Steel & Power Ltd. and others.
The attached assets include residential properties, office spaces, land, and commercial shops located across West Bengal that are beneficially owned by the CMD of Concast Group, Sanjay Kumar Sureka.
ED initiated investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI), BSFB, Kolkata, under various sections of the IPC, 1860, and Prevention of Corruption Act, 1988. It was alleged in the FIR that the borrower company, M/s Concast Steel and Power Limited, along with its Promoters/Directors, was engaged in fraudulent activities viz. Diversion/Siphoning of funds, submission of inflated stock statements, manipulation of balance sheet etc. and accordingly the accused persons have cheated the banks/FIs to the tune of Rs. 6210.72 Crore (excluding interest).
M/s Concast Steel & Power Ltd., promoted by Sanjay Sureka and headquartered in Kolkata, operated integrated manufacturing facilities in West Bengal, Odisha, and Andhra Pradesh, producing sponge iron, pig
iron, mild steel, rolled products, TMT bars, angles, channels, and ferroalloys.
The borrower company, M/s Concast Steel and Power Limited, availed multiple credit facilities including Term Loan, CC, Letter of Credit (LC) from the consortium of banks. The majority of these LCs were subsequently devolved. Majority of these LCs were opened in the name of related parties from where the funds were diverted to accounts of group companies and personal accounts.
During the investigation, it was found that the promoter had created a maze of shell entities in the name of his employees, relatives and associates with an intention to divert and launder the loan funds obtained from consortium of banks. The funds so diverted were utilized for personal expenses and buying various immovable properties.
