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The Enforcement Directorate (ED) has provisionally connected assets price Rs 255 crore of firms related to Maharashtra MLA from Rashtriya Samaj Paksha Ratnakar Gutte in reference to a Rs 635-crore financial institution fraud case, the company mentioned in a press release.
ED has connected assets of Gangakhed Sugar & Energy Ltd, Yogeswari Hatcheries, and Gangakhed Solar Power Ltd underneath the Prevention of Money Laundering Act, 2002 (PMLA). Gangakhed Sugar is owned by Gutte, who can be the chairman.
ED has alleged that Gutte together with others misused an agricultural mortgage facility for poor farmers. Under the mortgage scheme, banks financed sugar farmers (primarily based on their land holdings) to purchase inputs and mandatory tools for his or her crops corresponding to seeds, fertilisers, manure, tractor, pumps and so forth.
The company alleged that Gutte and his associates created an information financial institution of farmers by amassing their KYC (know your buyer) particulars whereas shopping for their crop. Gangakhed Sugar then tied up with banks to get agricultural mortgage for farmers. In impact, it turned an agent for banks and had the accountability of doing KYC verification of farmers.
ED mentioned its investigations revealed that Gangakhed Sugar used these KYC particulars to forge agricultural mortgage proposals within the identify of farmers. Banks sanctioned loans price Rs 772 crore and disbursed Rs 635 crore on the premise of these solid proposals between 2012-13 and 2016-17, it added.
Moreover, these funds have been by no means utilized by farmers and siphoned off to totally different financial institution accounts of Gangakhed Sugar on the premise of solid consent letters signed by farmers, the company alleged. It added that this cash was utilized by the corporate to purchase land, assemble an element, buy shares, repay loans and many others.
The connected assets embody a sugar plant and equipment price Rs 247 crore belonging to Gangakhed Sugar, land price Rs 5 crore belonging to the three corporations, financial institution balances of Rs 1.58 crore, and funding in shares valued at Rs 1.91 crore held by Gangakhed Sugar.
© The Indian Express (P) Ltd
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