ED attaches assets worth Rs 58.19 cr of Green Valley Plywood

New Delhi [India], Nov 1 (ANI): In an ongoing investigation against Green Valley Plywood Limited under the Prevention of Money Laundering Act (PMLA) 2002, the Enforcement Directorate (ED) has provisionally attached assets worth Rs 58.19 crores.
In August 2017, the Central Bureau of Investigation (CBI) had filed a charge sheet in this case. It was revealed that Green Valley Plywood Limited had got issued letters of credit amounting to Rs 71.79 from Indian Overseas Bank, Bhiwani Stand, Rohtak on the basis of fabricated documents showing sale or purchase of goods.
The investigation conducted by the ED revealed that the directors of Green Valley Plywood Limited had used four associate companies namely Mamchand Mahabir Prasad Pvt. Ltd, Pine Decor Pvt. Ltd., Vintage Decor Ltd. and Green Valley Decor Pvt. Ltd. to fudge transactions by showing the sale of goods to them which in turn issued invoices showing further sales to Arinits Sales Pvt. Ltd, Global Interiors Ltd, Vikas Globalone Ltd, Vikas Polymers (India), Moonlite Technochem Pvt. Ltd, Shubham Chemicals and Solvents Pvt. Ltd, Chemical Connection, Uniply industries Ltd and Agarawal & Associates Impex Pvt. Ltd.
These nine companies, controlled by the business associates of Jagmohan Kejriwal director of Green Valley Plywood Limited, had further shown the sale of same goods to Green Valley Plywood Limited thereby completing the circle of circular trading.
It was further revealed that all these transactions took place on paper without any actual movement of goods. By adopting this modus operandi, Green Valley Plywood Limited caused a loss of ? 71.79 crores to Indian Overseas Bank.
It was also found that the directors of the company, through a number of sham transactions, had alienated their properties in favour of their son Aditya Kejriwal.
These transactions were traced to Surya Manufacturing Private Limited a company, earlier owned and controlled by Jagmohan Kejriwal and his wife Anju Kejriwal, who had transferred their shares in favour of their son through a complex maze of transactions.
All such assets, identified during the course of investigations, have been provisionally attached under PMLA. Further investigations are under progress. (ANI)