ED Freezes Rs. 170 Crore in Assets Linked to Mandhana Industries’ Fraud Scheme.
26 September 2024
The Directorate of Enforcement (ED) in Mumbai has provisionally attached assets worth Rs. 170 Crore belonging to Purushottam Chhaganlal Mandhana, former Chairman and Managing Director of Mandhana Industries Limited (now GB Global Ltd.), under the Prevention of Money Laundering Act (PMLA), 2002. The attachments include residential and commercial properties across Mumbai, Thane, Raigad, and Bangalore, as well as movable assets such as bank balances, gold and diamond jewelry, shares, high-end cars, and luxury watches.
This investigation was initiated following an FIR by the CBI, which accused Mandhana Industries and its directors of defrauding a consortium of banks of Rs. 975.08 Crore. The investigation revealed a criminal conspiracy involving the diversion of loan funds through fraudulent transactions and circular trading. The CBI has yet to file a charge sheet in this case.
The ED found that Mandhana and his associates created fictitious entities to layer and conceal the proceeds of crime. They engaged in bogus transactions to mislead banks and shareholders, using illicit funds for personal debts, investments, and property purchases. Further investigations are ongoing as the ED continues to uncover the depth of the financial misconduct.