The Enforcement Directorate (ED) has returned assets worth ₹52.35 crore in a money laundering case involving Shakti Bhog Foods Limited (SBFL) and its directors. They are accused of cheating a group of 10 banks, led by the State Bank of India, out of ₹3,269 crore.
This case began in 2021, after the Central Bureau of Investigation (CBI) filed a case against SBFL. The directors of the company were accused of creating fake accounts and documents to misuse public money.
According to the ED, they have already attached assets worth ₹131 crore in this case and have filed six charge sheets so far.
Shakti Bhog Foods has now gone into liquidation. The liquidator, appointed by the National Company Law Tribunal on behalf of the banks and creditors, asked the court to release some of the properties that the ED had attached during its investigation.
In response, the ED agreed to return properties worth ₹52.35 crore (market value over ₹120 crore) to the liquidator. These properties will now be used to repay the banks and creditors who were cheated.
The ED said that it aims to give back the money earned from crime to the rightful owners. In the past, the agency has returned properties worth more than ₹25,000 crore in other major cases, such as those involving Nirav Modi, Mehul Choksi, and Vijay Mallya.
Shakti Bhog Foods, which was involved in producing wheat flour, rice, and pulses, had taken loans from various banks. However, instead of using the money for business, the funds were diverted to fake companies and sister concerns.
The ED found that fake bills and transport documents were created to make it look like real business was happening. In reality, the money was being moved through shell companies that existed only on paper. These shell companies were used to move, rotate, and withdraw the loan money.
A total of 108 such fake companies were found. These were controlled by people who charged commissions to help move the money without attracting attention.
Some of the money was transferred back to Shakti Bhog, its directors, and even unrelated third parties without any real business transactions. The ED said this clearly shows a planned and deliberate attempt to steal the loan money. The stolen money was then used to buy properties and other assets, making it appear like it was legally earned.
