The Enforcement Directorate has attached assets worth ₹255 crore in connection with a case of fraud, in which Maharashtra-based Gangakhed Sugar & Energy Limited (GSEL) and others are accused of taking agricultural loans in the name of farmers.
The attached properties include the plant and machinery of GSEL, Yogeswari Hatcheries and Gangakhed Solar Power Limited. The agency has also attached ₹1.58 crore in bank balance, and shares worth ₹1.91 crore held in the name of GSEL.
The ED initiated the money laundering probe in May 2019 on the basis of an FIR registered by the Gangakhed Police in Maharashtra’s Parbhani, against GSEL, its then chairman Ratnakar Gutte and others. The CID-Aurangabad later filed a charge sheet alleging misappropriation of funds.
According to the ED, the GSEL chairman conspired with others to get credit facilities under the agricultural loan scheme. The company runs a sugar factory.
The scheme’s aim is to meet the financial needs of sugarcane farmers, coming under the command area of a sugar factory. It is given for the purchase of seeds, fertilizers, manures, machinery, tractor, pump, harvesting and transportation of the crop.
The accused persons created a data bank of farmers who supplied sugarcane to the factory after collecting identification documents from them. The factory entered into agreements with the banks to get agricultural loans for farmers. GSEL became an agent for the banks and its responsibility was to do KYC verification of the farmers.
The ED alleged that from 2012 to 2017, the company forged agricultural loan proposals in the name of farmers using their documents and got loans to the tune of ₹772 crore sanctioned. The banks disbursed ₹635 crore to the bank accounts opened in the name of farmers. The funds were, however, never used by them and were instead diverted to different bank accounts of GSEL, based on their forged consent letters.
The misappropriated money was used to buy land, develop the factory infrastructure, acquire shares, meet the plant’s operational cost and repayment of loans, it is alleged.
Published - December 24, 2020 04:45 am IST
