The Enforcement Directorate (ED) has seized incriminating documents revealing benami properties worth over INR 100 crore as part of its ongoing investigation into a major bank fraud case in the Andaman and Nicobar Islands.
The case involves fraudulent loans and credit facilities extended by a public sector bank to shell entities, many of which were found to be either fictitious or operating under proxy ownership. ED officials have identified luxury real estate assets, including commercial plots and resort-linked properties, registered under false names or associates of the main accused.
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Trail of Fraud: Loans, Shell Firms, and Frontmen
According to the ED, the fraud was executed through fake documentation, inflated project valuations, and collusion with bank insiders to bypass standard due diligence protocols. The beneficiaries allegedly diverted the sanctioned funds into real estate investments and high-value purchases, often layering the money through shell companies registered across Delhi, Kolkata, and Port Blair.
Several properties located in prime tourist zones of the Andaman Islands were acquired under the guise of hospitality or agricultural ventures but were found to be fronts for laundering the misappropriated funds.
Officials conducted searches across multiple states, resulting in the seizure of property deeds, digital records, and incriminating correspondence linking the suspects to the benami assets.
Benami Transactions Act and Legal Action
The ED is proceeding under the Prevention of Money Laundering Act, 2002 (PMLA) and is also invoking provisions of the Benami Transactions (Prohibition) Amendment Act, 2016, which empowers authorities to confiscate properties held in proxy names.
“Investigation has revealed a nexus between certain businessmen, bank officials, and property developers who used benami routes to conceal proceeds of crime,” said a senior ED official.
The central agency is now compiling evidence for provisional attachment of the properties and may initiate further arrests following forensic examination of financial records.
The case marks one of the most significant economic crime investigations in the Union Territory in recent years, with authorities aiming to recover the proceeds of fraud and prevent similar collusive banking practices.