Canara Bank scam: ED attaches land, villa worth 2.8cr

Panaji: The directorate of enforcement (ED) attached immovable properties, including multiple plots of land and a residential villa in South Goa, valued at Rs 2.8 crore under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), in a case of bank fraud against Canara Bank.

The enforcement agency also initiated an investigation against Crown Minerals Trading Corporation (CMTC) and its partners based on an FIR and chargesheet filed by the CBI and Anti-Corruption Bureau. The firm's partners are accused of entering into a criminal conspiracy to cheat Canara Bank by fraudulently obtaining a loan of Rs 7 crore, which they allegedly failed to repay.

The ED investigation revealed that the partners of Crown Minerals obtained a credit facility to the tune of Rs 7 crore from Canara Bank on the false pretext of conducting business in the iron ore sector. “The accused dishonestly mortgaged properties as collateral security that were already pledged with several other banks and financial institutions,” said the ED.

According to the preliminary investigation, immediately after the loan was disbursed, the funds were siphoned off and diverted to the personal and proprietary bank accounts of the partners under the guise of fake business transactions. “These illicit funds, which constitute the proceeds of crime (POC), were then used for personal enrichment and to acquire other immovable properties,” ED officials said.

The attached properties, valued at Rs 2.8 crore, consist of 22 plots of land in Dharbandora belonging to partner Riyaz Shaikh, and two plots of land in Cuncolim and a row villa in Fatorda belonging to managing partner Aditya Angle. These properties have been attached as they were acquired from illicit funds and represent the value of the POC.

The ED investigation revealed that the partners of Crown Minerals obtained a credit facility to the tune of Rs 7 crore from Canara Bank on the false pretext of conducting business in the iron ore sector