New Delhi: The Enforcement Directorate on Thursday conducted raids at several locations relating to Varron Aluminium and its directors in four cities in Maharashtra, in connection with the Rs 293.74 crore bank fraud case, the company is currently embroiled in.The ED had initiated investigations under provisions of the PMLA, after the CBI had registered a case against the company and its Director Shrikant Pandurang Sawaikar. The ED’s investigation in the case revealed that Sawaikar had allegedly entered into a criminal conspiracy with bank officials of Canara Bank and others to cheat the Bank of India off Rs 293.74 crore. Also Read – Cong may promise farm loan waiver in HaryanaAfter getting the Bank of India to release the funds on the basis of alleged fake Letters of Credit issued by a Canara Bank branch, directors of Varron Aluminium had immediately transferred it through various accounts and finally used it to settle old dues and make fixed deposits. The CBI had registered a case against the firm in February 2017, based on a complaint from Bank of India, alleging that Varron Aluminium had defrauded their bank of the money by using illegal means. In the complaint, it is alleged that Bank of India had discounted 246 bills backed by LC issued by Canara Bank. However, when bank officials went for the money later, Canara Bank denied ever having issued the letters of credit in the first place. The ED has said further investigation into establishing the money trail in the case and further attachments are under progress.
Moonesinghe was arrested by the Criminal Investigations Department (CID) after US$1.1 million from the Far Eastern International Bank in Taiwan was found in his personal bank account.Far Eastern International Bank was hacked by means of a computer virus and some US$60 million was wired to the accounts of the suspects at a Sri Lanka bank. The Fort Magistrate’s court today rejected a request by former Litro Gas chairman Shalila Moonesinghe to travel overseas for medical treatment.Moonesinghe is in remand over the hacking of a Taiwanese bank. Litro Gas is a Government owned gas company.