NEW DELHI: The Enforcement Directorate (ED) announced on Wednesday that one Ashok Kumar Mittal, Director of Mahesh Timber Private Limited, Karnal, Haryana, has been arrested in connection with a Rs 195 crore money laundering case involving a bank loan fraud.
The ED launched a money-laundering inquiry after the Central Bureau of Investigation (CBI) filed a FIR against the company, its directors, and others for criminal conspiracy, cheating, forgery, and criminal misconduct of public servants.
"Mittal, a major director of Mahesh Timber Private Limited, fraudulently increased the Letter of Credit limit from Rs 21 crore to Rs 195 crore, which was routed to his Singapore-based connected firms on account of bogus imports," the ED official said. According to the official, the suspects caused a total unjust loss to the bank of Rs 155 crore, as well as wrongful gains to themselves.
Mittal had to be detained because he was uncooperative during the investigation and lied to the investigators by concealing important facts. On May 24, he was arrested and brought before a Special Court in Panchkula, Haryana. He has been remanded in ED custody for four days by the judge. Now, ED officers will take down his statements and provide him with documents and evidence.