In connection with a money laundering investigation, the Enforcement Directorate (ED) has conducted searches at the premises of a Mumbai-based company and seized assets totaling Rs 20.11 crore.
The agency said searches were conducted at various premises of Max Flex Imaging and System, which is controlled by Hitesh R Jobalia and Nimesh N Shah, on Monday and Tuesday. The said action has resulted into seizure of stocks of Flex, Vinyl and other items worth Rs 12 crore, FDRs amounting to Rs 1.25 crore, demat accounts having balance Rs. 6.30 crore, foreign currency, cash, gold jewellery and silver bars, totalling Rs 20.11 crore, the agency said in a statement.
Central Bureau of Investigation (CBI) had initiated a case against the company in connection with an alleged loss of Rs 464.41 crore incurred by a State Bank of India-led consortium. Subsequently, the Enforcement Directorate launched a money laundering investigation against the company based on these allegations.
ED probe showed the company and other accused persons entered into a criminal conspiracy to cheat consortium of the State Bank of India by taking loans fraudulently by submitting inflated stock statements/balance sheet of the said company.