Mumbai’s Enforcement Directorate (ED) executed raids at eight sites across Mumbai and Yamuna Nagar in Haryana on Friday, as part of an active investigation into a Rs 220-crore bank fraud linked to Sharon Bio Medicine Limited. During the operation, assets totaling Rs 14.53 crore were seized, according to officials.
These searches target the ongoing case against the pharmaceutical company, along with its key associates — Mohan Prasad Kala, Savita Satish Gowda, Lalit Shambu Misra, and others — under the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s raid uncovered movable assets, including bank balances and Demat accounts worth Rs 14.53 crore, which were subsequently seized or frozen. The agency also secured various incriminating documents, digital devices, and paperwork related to immovable properties.
The ED’s probe stems from an original case lodged by the Central Bureau of Investigation (CBI) Anti-Corruption Bureau (ACB) in Mumbai. This case, filed against Sharon Bio Medicine Limited and its associates, invoked multiple sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988, accusing the firm of defrauding banks using fabricated documents. The alleged fraudulent activities are estimated to have cost the banks approximately Rs 220 crore.
Investigation details reveal that Sharon Bio Medicine Limited, a manufacturer of Active Pharmaceutical Ingredients (APIs), reportedly leveraged an extensive range of credit facilities from various banks by submitting falsified documents and counterfeit contracts.
The firm allegedly misappropriated these credit facilities, diverting funds for asset creation rather than the stated purposes. Further analysis traced these bank funds, revealing a network of shell companies purportedly used by SBML to generate bogus sales and purchases. This scheme inflated the company’s turnover, enabling it to secure and expand credit limits with fake contracts and forged paperwork.
Once the loans were disbursed, funds were allegedly funneled through multiple shell entities established under the names of SBML employees and relatives of the firm’s key figures, effectively hiding the money trail and redirecting it for asset creation.
The ED has stated that the investigation remains ongoing as they continue to trace the funds involved.
published by dailybharat
