Mumbai, March 27 – The ED has attached immovable properties worth ₹19.12 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the ₹5,600 crore fraud perpetrated by the National Spot Exchange Limited (NSEL), which impacted 13,000 investors, an official said on Friday.
The Enforcement Directorate (ED), Mumbai Zonal Office, initiated an investigation into the case based on an FIR registered by the M.R.A. Marg Police Station, Mumbai, which is being investigated by the EOW, Mumbai Police, under various sections of the Indian Penal Code (IPC), 1860, against NSEL, its directors, key officials, and 25 defaulters, according to a statement.
The ED's investigation under PMLA revealed that NSEL and its defaulting members engaged in criminal conspiracy, cheating, and forgery by permitting trading in commodities without actual underlying stocks, thereby defrauding approximately 13,000 investors to the tune of around ₹5,600 crore.
The ED investigation revealed that three defaulting members of NSEL, namely LOIL Overseas Foods Ltd, LOIL Continental Foods Ltd, and LOIL Health Foods Ltd (collectively referred to as LOIL Group), fraudulently obtained funds through fictitious/bogus sale transactions of paddy via the NSEL platform.
The ED stated that the total liability of the LOIL Group of companies towards NSEL was approximately ₹720.30 crore.
The scrutiny of bank accounts established that approximately ₹569.04 crore was siphoned off from the NSEL settlement accounts of LOIL group entities, the statement said.
The investigation revealed that a substantial portion of the diverted funds was channeled through various group entities, including Lakshmi Energy and Foods Limited, and was used for repaying bank loans, business operations, working capital requirements, and the acquisition of immovable properties, according to the statement.
During the investigation, a total of 34 Provisional Attachment Orders have been issued in the case, attaching properties worth nearly ₹3,452.16 crore. Seven Prosecution Complaints have been filed against 148 accused persons before the Special Court (PMLA), which has taken cognizance of the same, the ED said.