Enforcement Directorate (ED) has attached Green Valley Plywood Ltd’s assets worth 58.19 crore under Prevention of Money Laundering Act. The ED move follows a charge-sheet filed by CBI in this case in August 2017 for allegedly securing letter of credit amounting Rs 71.79 crore on the basis of fabricated documents showing sale and purchase of goods from Rohtak branch of Indian Overseas Bank. ED probe so far, revealed that the directors of Green Valley Plywood Limited had used four associate companies namely Mamchand Mahabir Prasad Pvt Ltd, Pine Decor Pvt Ltd, Vintage Decor Ltd and Green Valley Decor Pvt Ltd to fudge transactions by showing sale of goods to them which in turn issued invoices showing further sales to nine other companies, controlled by the business associates of Green Valley Plywood Limited director Jagmohan Kejriwal.
These nine companies had further shown sale of same goods to Green Valley Plywood Limited there by completing the circle of circular trading. According to ED all these transactions took place on paper without any actual movement of goods. By adopting this modus operandi Green Valley Plywood Limited caused a loss of 71.79 crore to Indian Overseas Bank.
It was also found that the directors of the company, through a number of sham transactions, had alienated their properties in favour of their son Aditya Kejriwal. These transactions were traced to Surya Manufacturing Private Limited a company, earlier owned and controlled by Jagmohan Kejriwal and his wife Anju Kejriwal, who had transferred their shares in favour of their son through a complex maze of transactions, the investigation agency added.