NSEL scam: ED attaches assets worth over Rs 414 crore of Lakshmi Group

The Enforcement Directorate has provisionally attached properties of Lakshmi Energy & Foods Limited worth Rs 414 crore under PMLA in the money laundering investigation related with NSEL scam. The agency attached land, building, godowns and real estate of the company.

Earlier, the ED had registered money laundering case in the NSEL scam on the basis of FIR registered by EOW in October, 2013.

It was alleged that the accused persons in the said case hatched a criminal conspiracy to defraud the investors, induced them to trade on the platform of NSEL, created forged documents like bogus warehouse receipts and falsified the accounts.

Hence, NSEL committed criminal breach of trust against approximate 13000 investors to the tune of Rs 5600 crore.

In this case, the total liability of LOIL group of companies consisting three defaulters i.e LOIL Health Foods Limited, LOIL Overseas Foods Limited, LOIL Continental Foods Limited was Rs 720.30 crore.

During the investigation, it was revealed that the LOIL group of companies namely: LOIL Overseas Foods Ltd, LOIL Continental Foods Ltd and LOIL Health Foods Ltd, based in Chandigarh had fraudulently obtained huge funds from NSEL by trading on the exchange platform against non-existent/fictitious sale of their commodity i.e. paddy (rice).

"The said amount was further diverted to accounts of Lakshmi Energy & Foods Limited and utilized the same for procurement of raw material/working capital/plant expansion of Lakshmi Energy & Foods Limited, and also to procure real estate properties in the name of group companies and its promoters/directors", the official said.

In this way, the proceeds of crime i.e. funds received from NSEL were invested in the Lakshmi Energy by way of bank loan repayments and raw material/working capital utilization/expansion projecting the same as untainted.

Also read: NSE cautions members against defaulting entities in NSEL scam