ED has conducted searches on 13.01.2024 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 at 8 premises in Madhya Pradesh
Directorate of Enforcement (ED) has conducted searches on 13.01.2024 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 at 8 premises in Jabalpur, Katni, Satna and Rewa of Madhya Pradesh in the matter of M/s Jagdamba AMW Automotives Pvt. Ltd. & others. During the search, the main accused Pushpendra Singh, director of M/s Jagdamba AMW Automotives Pvt. Ltd. was arrested at Jabalpur, and cash of Rs. 16 lakhs was seized from the residential premise of Pushpendra Singh along with documents of immovable properties. The arrested person was produced before the Hon’ble Special Court (PMLA), Jabalpur on 14.01.2024 which sent the accused person to ED custody.
ED initiated investigation on the basis of FIR registered/Charge-sheet filed by CBI, BSFB, New Delhi under various sections of IPC and Prevention of Corruption Act, 1988 against M/s Jagdamba AMW Automotives Pvt Ltd and its directors and Branch Manager of Canara bank, SME Branch, Jabalpur.
ED investigation revealed that Pushpendra Singh through M/s Jagdamba AMW Automotives Pvt Ltd in connivance with Krishna Dutt Dubey (deceased), the then branch Manager and others committed a fraud to the tune of Rs. 14.93 Crore, during April 2015 to March 2016, by way of wrongful sanction and disbursal of 50 vehicle loans (Truck Loans) on the basis of forged and fabricated documents issued by M/s Jagdamba AMW Automotives Pvt Ltd. The loan proceeds in all cases were transferred to the bank account of dealer i.e. M/s Jagdamba AMW Automotives Pvt Ltd but in majority of the cases dealer did not deliver the vehicles to customers and loan accounts became NPA which caused a wrongful loss to bank to the tune of Rs.14.93 Crore. Further, the said loan proceed was siphoned off from the bank accounts of M/s Jagdamba AMW Automotives Pvt Ltd through RTGS/ cash withdrawal/ repayment of other term loans etc. for his personal use and did not pay the same to the AMW vehicles manufacturer company M/s AMW Motors Ltd for which the loans were sanctioned. Thus, Pushpendra Singh was found to be have knowingly indulged in the processes and activities connected to proceeds of crime.
Further investigation is under progress.