Mandhana Industries Scandal: Unmasking a Rs 975 Crore Fraud

Mandhana Industries' promoter, Purushottam Mandhana, is accused of using business loans for personal benefit, resulting in a Rs 975 crore loss to a Bank of Baroda-led consortium. The Enforcement Directorate's charge sheet names 18 accused, including Mandhana and family. A special court summoned the accused under money laundering charges.

Purushottam Mandhana, a key figure of Mandhana Industries, stands accused of diverting business loans for personal use, causing a staggering Rs 975 crore loss to a consortium of lenders led by Bank of Baroda, according to a charge sheet by the Enforcement Directorate (ED).

On October 1, a special court for Prevention of Money Laundering Act (PMLA) cases found enough evidence to prosecute Mandhana and others, summoning them for a hearing on November 21. The charge sheet lists 18 people, including Mandhana's family members, involved in these malpractices.

The ED claims that Mandhana Industries, since the 1990s, inflated its turnover to secure additional credit, which was then used for personal debts and assets rather than business purposes. The court has issued summons to all accused, with Mandhana released on bail and his son Priyavrat in custody.

(With inputs from agencies.)