ED Attaches Rs 9.19 Crore Assets In Sayona Colors Bank Fraud Case
The Enforcement Directorate has provisionally attached movable and immovable properties worth Rs 9.19 crore in connection with an alleged Rs 71.88 crore bank fraud case involving Sayona Colors Pvt Ltd and other entities, the central agency announced.
The action, taken under the provisions of the Prevention of Money Laundering Act (PMLA), marks the second provisional attachment order issued by the agency in this matter. With this latest enforcement step, the total value of attached assets in the money-laundering investigation has reached Rs 9.62 crore.
According to the ED, the newly attached properties were identified as proceeds of crime generated through the alleged diversion and misuse of bank funds. The assets include four agricultural land parcels that were allegedly acquired using diverted loan amounts, two industrial land parcels, a residential flat, term deposits, and equity shares held in two demat accounts.
The money-laundering probe stems from a first information report registered by the Central Bureau of Investigation’s Banking Securities and Fraud Branch (BS&FB) in Mumbai. The CBI had registered the case against Sayona Colors, its director Paresh D Patel, Shamrock Chemie Pvt Ltd, its directors, and several other individuals and entities.
The central agency alleged that the accused companies defrauded banks of Rs 71.88 crore by systematically diverting borrowed funds to promoters and sister concerns. This was allegedly executed through bogus agreements and circular transactions, which were arranged to secure higher credit limits from financial institutions.
During the investigation, the ED found that Sayona Colors allegedly utilised the sanctioned loan funds to purchase properties in the names of its promoters and group entities. In addition, funds were allegedly transferred to group companies either directly or through the misuse of Letter of Credit facilities.
The agency further alleged that Sayona Colors and Shamrock Chemie routed funds among themselves and other associated entities through circular transactions. These transactions were allegedly conducted to portray an inflated financial standing and induce lending banks to enhance credit facilities.
