Bank fraud: ED files money laundering charge sheet against Goa-based milk products company

The Enforcement Directorate on Saturday said it has filed a charge sheet under money laundering charges against a Goa-based milk products company.

New Delhi: The Enforcement Directorate on Saturday said it has filed a charge sheet under money laundering charges against a Goa-based milk products company as part of a probe linked to alleged bank loan fraud at State Bank of India.

The prosecution complaint was filed against 27 accused comprising Ganindu Milk and Milk Products Private Limited (GMMPL) and other related entities of the Siddharth group of companies, including their director and promoters, it said in a statement.

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The special Prevention of Money Laundering Act (PMLA) court in Mapusa took cognisance of the charge sheet on August 17, the ED said. The money laundering case stems from a Central Bureau of Investigation FIR.

GMMPL and those linked to it obtained a term loan of Rs 34.20 crore on March 15, 2011, from the State Bank of India with the objective of setting up a tetra pack milk production unit or an Ultra-Heat Treatment Plant (UHT) at Solapur in Maharashtra, it said.

“GMMPL with dishonest intention, under the guise of procurement of UHT machinery illegally diverted the term loan of Rs 20 crore into the bank accounts of other related companies,” the agency alleged.
Likewise, it said, GMMPL opened nine Letters of Credit (LCs) with SBI and an amount of Rs 19,01,98,670 was discounted for the supply of butter. However, the said LC amount was not utilised for the intended purpose of butter procurement and instead was “diverted” into the bank accounts of other related companies, the ED said.

Assets worth more than Rs 39 crore belonging to the accused were attached by the ED in October 2021 as part of this investigation.