19 June 2019: Tightening the noose around the Surat-based Siddhi Vinayak Logistics Ltd (SVLL), the Enforcement Directorate has attached over 6,000 vehicles worth Rs 1,610 crore of the company in a money-laundering case. The agency had earlier arrested its Director Rupchand Baid for allegedly “aiding and laundering” money in the Bank of Maharashtra loan fraud case worth Rs 836.29 crore. The ED probe against the company and its directors has been initiated after the CBI FIR. The company availed several loans from banks using false papersin the names of its employees and drivers without their knowledge for personal gains.
Founded in 2002 and headquartered in Mumbai, Siddhi Vinayak Logistic Limited provides road transportation services to customers in India. The company claims to have a large fleet of around 6,000 trucks and has a network throughout Gujarat, Rajasthan, Delhi NCR, Maharashtra, Madhya Pradesh, Karnataka, Tamil Nadu, and Andhra Pradesh.
Previously, the agency had attached the assets worth over Rs 19 crore of the company. “Investigation made so far revealed that the loans were availed on the basis of forged or fabricated documents and in the name of employees and drivers who were kept in dark by SVLL. The investigation also revealed that Baid routed these loans through accounts of various related entities,” the ED said in a statement.
As per the FIR, the company raised money in the name of loans or credit facilities from banks under several schemes. For example, SVLL availed several loans to buy old and new vehicles under the ‘Chalak se Malak’ (driver to the owner) scheme. These loans were availed in the name of SVLL drivers and employees. The agency said the company, instead of using these funds for the intended purpose, used it for personal gains, company expenses and repaying pending loans. And company director Baid allegedly played a key role in availing these loans through fraudulent means. “After disbursement of the loan to these companies, the loan money was circulated through a chain of group associate companies through a series of unsecured loan and fraudulent transactions,” the ED had earlier said.