New Delhi: In a major crackdown against financial irregularities, the Enforcement Directorate (ED) has raided at least 15 locations in the Delhi-National Capital Region (NCR) of shell companies linked to dairy major Kwality Limited and its former directors.
During the operation, the probe agency recovered cash worth Rs 1.3 crore and some objectionable documents while a demat account of the company containing Rs 2.5 crore was also seized.
According to officials, the ED action comes after it received inputs about the activities of fake companies associated with promoters and directors of erstwhile companies like Sanjay Dhingra and Siddhant Gupta.
ED, Delhi has conducted search operations on 27.11.2024 at 15 locations in Delhi and NCR belonging erstwhile Kwality Limited and the then Promoters/ Directors Sanjay Dhingra, Siddhant Gupta, and other shell companies related to them. During the search operations, cash amounting… pic.twitter.com/OhNnOOJbZm
— ED (@dir_ed) November 29, 2024
The case stems from a September 2020 FIR filed by the Central Bureau of Investigation (CBI) against the said promoters and Kwality Limited. It accused the company and its directors of indulging in “falsification and fabrication” of books of accounts by “misrepresentation” of sales, purchases, debtors and creditors and subsequently “cheated” a consortium of banks to the tune of Rs 1400.62 crore, as reported by PTI.
The accused“manipulated” the books of accounts to represent “higher" sales and debts, according to the ED's probe.
“Huge amounts of trading (sales and purchase) were made without actual physical deliveries or receipt of the goods at factory premises,” the agency stated.
