The Enforcement Directorate (ED) has begun a probe under the Prevention of Money Laundering Act, 2002 (PMLA) against ABC Cotspin Pvt Ltd. They have also started investigating the firm director, Ashish Jobanputra, and others. ED moved ahead with the inquiry based on the complaint registered with the Central Bureau of Investigation, Mumbai.
Initially, the ED hooked moveable and immovable assets worth ₹17.7 crores in the name of ABC Cotspin and affiliated entities. CBI Mumbai charged the firm under the provisions of the IPC and the Prevention of Corruption Act.
A statement released by the ED said that the firm defrauded State Bank of India and Bank of Baroda of ₹804.5 crores. ABC Cotpsin was availing bill discounting facilities from the SBI and BoB against letters of Credit of prime banks. During 2014-15, the prime suspect, Ashish Jobanputra, prepared and signed fake export documents. Without making any original exports, he presented them to SBI and BoB.
ED officers mentioned that the accused arranged export bills discounted from banks. Further, they remained unpaid and rendered losses to the banks. The ED outlined several real-estate assets named after ABC Cotpsin. ‘Total attachment in the case till date is Rs 31.2 crore,’ the memo said.