New Delhi: The Directorate of Enforcement (ED), Gurugram Office, conducted extensive search operations under the provisions of the Prevention of Money Laundering Act (PMLA) at 16 locations in Delhi, Gurugram (Haryana), Mahendergarh (Haryana), and Jamshedpur (Jharkhand) on July 18.
The case involves Allied Strips Limited (ASL), its promoters Gaurav Aggarwal, and Mohender Aggarwal, and other associated individuals including Rao Dan Singh (MLA-Mahendragarh Constituency), Akshat Singh, and their entities, Suncity Projects Pvt. Ltd, among others.
The ED initiated the investigation based on an FIR registered by the Central Bureau of Investigation (CBI). The accused and their entities are alleged to have committed fraud by siphoning and diverting funds, criminal misappropriation, criminal breach of trust, cheating, and other fraudulent activities, causing a wrongful loss of more than Rs. 1392.86 crore to a consortium of banks led by Canara Bank.
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The modus operandi involved siphoning off funds borrowed from banks to other companies in the form of unsecured loans and advances, writing off debts of various debtors, conducting bogus transactions, and taking cash in return, which was then invested in land and other long-term assets.
During the search operations, the ED identified and seized cash amounting to Rs. 1.42 crore, incriminating documents, undisclosed 32 flats and lands, various lockers, trusts, and more from the premises of the group entities and individuals, including entities associated with Akshat Singh, son of MLA Rao Dan Singh.
Further investigation into the matter is ongoing.