New Delhi: The Enforcement Directorate (ED), Chandigarh Zonal Office, has taken major action in a bank fraud–linked money laundering case by provisionally attaching seven immovable properties valued at approximately ₹88.68 crore. The action is part of the ongoing investigation against Mastana Foods Private Limited and its directors. The company is alleged to have committed bank fraud of about ₹152.85 crore, and the probe is still underway.
The case came to light after a complaint filed by State Bank of India against the company and its directors, following which the Central Bureau of Investigation (CBI) registered an FIR. Based on the FIR, the ED launched a detailed investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The probe revealed that the company artificially inflated its business turnover during the financial years 2014–15 to 2016–17 to misuse the bank credit facility.
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According to investigators, the company allegedly created fake transactions and used a network of shell entities to siphon off funds. The loan account was declared a non-performing asset (NPA) during the financial year 2017–18. The probe found that the company carried out circular or round-tripping financial transactions with related entities — AKM Foods Private Limited, SAS Rice Unit and L K International — which acted both as suppliers and customers, enabling large-scale fund movement without any real business activity.
The ED said that fake purchase and sale invoices along with fabricated transport documents were used to route money through a network of shell firms. The objective was to create an appearance of legitimate commercial activity and conceal the true nature of the funds. Investigators also found that many of the debtor firms either did not exist or were controlled by middleman Suresh Jain and his associates. These entities were found to have no genuine business operations.
The agency further stated that the company later made large provisions for doubtful accounts but did not initiate effective recovery measures. The allegedly diverted funds were thus shown as business losses. The investigation also indicated layering of transactions through paper records and misuse of banking channels to hide the original source of money.
In the criminal proceedings related to the primary offence, the court had found company directors Krishna Mohan and Anil Khurana guilty of conspiring to cheat the State Bank of India.
ED officials said that the attached properties are part of the ongoing probe and further assets may be identified during the investigation. The agency is also examining the channels through which the fraudulent proceeds were routed and whether any other individuals or entities were involved.
Authorities indicated that more properties could be identified during the course of the investigation. The ED aims to trace and bring illegally obtained money within the ambit of law. Further legal proceedings and examination of the money laundering network are continuing.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
