A senior official of the central agency said the ED registered a case against Nakoda Ltd and its promoters on the basis of an FIR and charge-sheet filed by the CBI.The police complaint was registered against chairman and managing director Babulal Jain and his son Devendra Jain, who is a joint MD of the company, he said.
Nakoda Ltd allegedly obtained loans from a consortium of 13 banks led by Canara Bank and defaulted on repayment of these loans to the tune of Rs 2,107 crore.
"Investigations revealed that Babulal Jain and his son Devendra entered into a criminal conspiracy...to carry out fake sales and purchases of fancy fabrics," said the official.
On the basis of these fake invoices, Nakoda Ltd allegedly availed of 816 Letters of Credit (LCs) from the banks.
The funds borrowed through the LCs were allegedly laundered and utilised for repayment of various loans and as a working capital to run the plant and factory."Thus the loans were used for purposes other than for which they had been sanctioned," the official said.The properties attached today included the company's Surat-based plant and machinery as well as a building and a piece of land, said the official.