Legal

ED attaches assets worth over Rs 100 crore of Fairdeal Supplies and directors in fraud case

Updated : January 21, 2020 12:56 PM IST

Fairdeal Supplies is a supplier of coke, coal and iron ore.

A charge-sheet was filed by CBI before a special court in Kolkata against the company and its directors for defrauding UCO Bank, Kolkata, to the tune of Rs 231 crore.

The Enforcement Directorate has attached assets worth more than Rs 100 crore of directors of Kolkata-based Fairdeal Supplies in connection with an alleged bank fraud case. Fairdeal Supplies is a supplier of coke, coal and iron ore.

The assets, that have been attached under PMLA, include land and building of SIV Industries, an office building, a farmhouse and a bungalow in Ahmedabad and seven fixed deposits, said a release by ED. The total value of these assets is Rs 107 crore.

Earlier, a charge-sheet was filed by CBI before a special court in Kolkata against the company and its directors namely Ram Prasad Agarwal, Narayan Prasad Agarwal, Pawan Kumar Agarwal and Saurabh Jhunjhunwala and others for defrauding UCO Bank, Kolkata, to the tune of Rs 231 crore.

It has been alleged that the company and its directors availed various credit facilities and Foreign Letters of Credit (FLCs) from the bank fraudulently by submitting inflated and fabricated stock statement.

"M/s Fairdeal Supplies Ltd. did not route the sale proceeds of coal imported under the Foreign Letters of Credit through UCO Bank resulting in accumulation of the Letters of Credit. The funds were diverted for

other purposes, thereby defrauding the Bank to the tune of Rs. 231.95 Crores," stated the ED.

ED attaches assets worth over Rs 100 crore of Fairdeal Supplies and directors in fraud case

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