ED raids Maharashtra sugar factory in Rs 350-crore bank fraud case
The Enforcement Directorate (ED) raided multiple locations in Maharashtra over a ₹350 crore bank fraud linked to KGS Sugar and its promoters. The company allegedly secured loans using forged documents and diverted funds for personal use. Raids uncovered cash, gold, luxury assets, and documents tied to benami properties. The ED’s probe stems from a Jalna Police FIR.
The Enforcement Directorate (ED) has conducted search operations across multiple locations in Maharashtra in connection with a Rs 350-crore bank fraud involving KGS Sugar and its promoters, officials said on Monday.
The raids, carried out on May 23 by the central agency, were conducted under the Prevention of Money Laundering Act (PMLA), 2002. Premises in Nashik, Kopargaon (Shirdi), and Thane were searched as part of the ongoing probe into the alleged large-scale financial fraud orchestrated by KGS Sugar and Infra Corporation Ltd. and its directors.
The investigation centred on allegations that the company fraudulently secured bank loans worth over Rs 350 crore using forged and fictitious documents. These funds were allegedly diverted and siphoned off for personal enrichment and acquisition of assets.
During the raids, ED sleuths recovered and froze assets including Rs 70.39 lakh in cash, gold jewellery valued at approximately Rs 1.36 crore, a high-end luxury car, demat accounts and shares worth Rs 10 lakh, several electronic devices, documents linked to benami properties, and other incriminating records, according to officials.
The ED’s probe is based on an FIR and subsequent chargesheet filed by Jalna Police. The case names KGS Sugar and Infra Corporation Ltd., its director Dinkar S. Bodke, and others for alleged offences including cheating, criminal conspiracy, use of forged documents, and criminal misconduct.
According to the ED, KGS Sugar secured the loans from a consortium of banks led by Canara Bank. Investigators alleged the funds were funnelled through a complex network of shell entities and round-tripping transactions, masked as legitimate business dealings with civil and engineering, procurement, construction (EPC) contractors.
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Source : India Today
