Massive Rs 7,300 Crore Bank Fraud Unraveled in Chhattisgarh

The Enforcement Directorate has attached 73 hectares of agricultural land linked to a Rs 7,300 crore bank fraud by Kanpur-based Shri Lakshmi Cotsyn Limited. The case stems from a CBI FIR concerning financial misconduct between 2010-2018, including inflated inventory and unauthorized diversions of funds.

The Enforcement Directorate (ED) has made a significant breakthrough in a Rs 7,300 crore bank fraud investigation involving Kanpur-based Shri Lakshmi Cotsyn Limited. On Tuesday, the ED announced the attachment of 73 hectares of agricultural land in Chhattisgarh, valued at over Rs 31.94 crore, linked to the ongoing probe.

The ED's statement highlights that the company, alongside many key individuals, is at the center of a multifaceted money laundering case initially reported by the Central Bureau of Investigation (CBI) in 2021. The CBI's FIR alleged various illegal activities, including criminal conspiracy, forgery, and misuse of bank loans provided by a consortium led by the Central Bank of India from 2010 to 2018.

The financial irregularities unearthed by a forensic audit pointed to inflated inventory, unauthorized sale processes, and improper handling of supplier advances. It was revealed that significant fund diversions were undertaken, including transfers to the group firm and then to individuals, leading to the acquisition of lands in the name of employees and unsuspecting civilians.

(With inputs from agencies.)