Sharon Bio Medicine fraud case: ED issues provisional attachment order
As part of the ongoing probe in the case of bank fraud against M/s Sharon Bio Medicine Limited and others, Directorate of Enforcement (ED), Mumbai Zonal Office has issued a Provisional Attachment Order for immovable assets worth Rs. 9.39 Crore (approx.), under Prevention of Money Laundering Act (PMLA), 2002. Provisionally attached assets include immovable assets in the form of flats at Pune in Maharashtra.
The Company was engaged in the development, manufacturing and commercialization of pharmaceutical products.
ED initiated investigation on the basis of FIRs registered by CBI, ACB, Mumbai against M/s Sharon Bio Medicine Limited (SBML) and others under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 for committing fraud against banks by using bogus documents causing loss to the banks to the tune of Rs. 286 Crore (approx).
ED investigation revealed that Mohan Kala, Mrs. Savita Gowda and Lalit Misra, the then Directors of M/s Sharon Bio Medicine Ltd. with the help of others inflated/fudged/manipulated the stock statements/balance sheets/records of the company by doing circular transactions in guise of sales and purchases creating fictitious transactions to secure huge loans from banks.
They set up many shell companies/firms wherein the employees of M/s SBML and relatives of Mohan Kala and Mrs. Savita Gowda were directors/shareholders to which the bank funds were diverted/siphoned off.
The bank funds were not utilized for the purposes for which they were availed. Instead they were siphoned off and utilized for the personal use and purchasing various properties in the names of the directors and their related entities/persons.
Earlier, ED has conducted search operation in this case on 23.10.2024 resulting in seizure/freezing of various movable assets amounting to Rs. 16.42 Crore (approx.) along with various other incriminating documents & digital devices. ED also issued a provisional attachment order in this case on 24.01.2025 for assets worth Rs. 79.78 Crore (approx.), Total attachment & seizure in this case till date amounts to Rs. 105.59 Crore (approx.).
Further investigation is under progress.
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