The Enforcement Directorate’s Lucknow Zonal Office has provisionally attached a 227 sq. yard land parcel in Kanpur worth ₹27.91 lakh under PMLA, 2002, in connection with the Krishna Containers bank fraud case. The property, registered in the name of accused Dinesh Arora (Managing Partner of M/s Krishna Containers), represents equivalent value of siphoned funds that were fully dissipated through cash withdrawals.
Modus Operandi Uncovered
The ED investigation revealed an elaborate fraud where:
- 26 Letters of Credit (LCs) worth ₹32.35 crore were fraudulently issued in favor of dummy entities (G.P. Overseas, M.R. Traders, Dinesh Soaps & Detergents)
- Forged documents and fictitious transactions were used to process LCs
- Funds were immediately layered through group accounts and fully withdrawn in cash (e.g., ₹1.03 crore from one LC withdrawn same day of credit)
Legal Basis
The case originates from a CBI FIR alleging:
- Criminal conspiracy (IPC Section 120B)
- Cheating (IPC Section 420)
- Corruption charges under Prevention of Corruption Act
Significance of Attachment
Since the defrauded amount was entirely liquidated through cash withdrawals, the ED exercised its PMLA powers to attach an equivalent value asset – the Kanpur land parcel held by the prime accused. This preventive measure ensures available assets are secured against the massive ₹32.35 crore bank loss.