ED attaches properties of Apkon Crushes over bank fraud

The Enforcement of Directorate (ED) has attached properties worth Rs 13.87 crore belonging to M/s Apkon Crushers and its partners in a bank fraud case under the Prevention of Money Laundering Act.

Two immovable properties and five vehicles bought from the proceeds of crime have been attached, the ED said. All proceeds of the crime have been attached, it added.

The ED launched an investigation under the PMLA based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Apkon Crushers and its partners under the Prevention of Corruption Act in 2020 based on a complaint filed by the chief manager of Punjab National Bank.

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The firm is accused of securing credit facilities from the bank through its partners by producing fake and forged audit balance sheets.

ED investigations showed that the company had forged its balance sheet and manipulated the figures of stock in hand and receivables on a significantly higher side to obtain the credit facility from the bank fraudulently. The loan was diverted for the personal use of the partners and for purposes other than what it was meant.

The partners also didn’t route the revenue of the firm through the cash credit account and didn’t serve the interest liability. As a result, the account turned into Non-Performing Asset (NPA) in 2019.