The Enforcement Directorate (ED), in a major turn of events in the money laundering case it has been conducting against Shakti Bhog Foods Limited (SBFL), has provided relief of 52.35 crores worth of assets. This transfer is in pursuance of giving the proceeds of crime to their rightful owners- in this case, a group of 10 banks headed by the State Bank of India (SBI), which was cheated of 3,269 crores.
The investigation by the ED is based on a Central Bureau of Investigation (CBI) case registered in 2021. As per the allegations, the directors of SBFL fabricated financial statements and falsified documents to secure bank loans for several dummy entities and affiliated companies, none of which had any business operations. These were transactions, done by using false invoices and fabricated transportation documents, which were meant to look like genuine trade transactions, the ED added. It is claimed that the money was laundered using a web of shell companies.
The ED has so far attached assets to the tune of ₹131 crore in relation to the case and has filed six charge sheets against the accused. After the company was liquidated, a liquidator was appointed by the National Company Law Tribunal (NCLT) on behalf of the Committee of Creditors (CoC) -which consisted of the defrauded banks- who later moved a plea seeking restoration of attached properties.
In this regard, the ED has agreed to reinstate some movable and immovable properties of Shakti Bhog, indicating its willingness to make sure that the victims of financial crimes are compensated. These restored assets are now worth ₹52.35 crore, whereas their market value is expected to be more than ₹120 crore.
The agency has already returned more than ₹25,000 crore to banks and individual victims in high-profile cases like that of Nirav Modi, Mehul Choksi, and Vijay Mallya, the agency pointed out, indicating its consistency in investigations that lead to recovery and repatriation of laundered money.
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