Mumbai: The Enforcement Directorate arrested Priyavrat Mandhana, the son of Purushottam Mandhana, promoter and chairman of Mandhana Industries Ltd (MIL), in connection with the Rs 975 crore bank fraud case.
About The Arrest Of Priyavrat Mandhana
His father was also arrested recently in the case but was granted bail within a day. Priyavrat, who acted as vice-president (corporate affairs) of the firm, was arrested on Monday evening and produced before the Prevention of Money Laundering Act (PMLA) court on Tuesday evening. He has been remanded to ED custody till August 2.
In the plea seeking his custody, the ED pleaded that Priyavrat was evasive to queries regarding the receipt of Rs 6.46 crore from the firm. The agency has alleged that Purushottam Mandhana and his family members siphoned off the loan funds for their personal enrichment.
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During the probe, the ED claimed that it collected details of around 200 bank accounts of MIL and found that substantial funds were transferred to a company M/s Azarel Fashion Pvt Ltd, from there it was transferred to various shell companies. The agency claimed that M/s Balaji Corporation, a sister company of MIL and also one of the shell companies, was incorporated in 2003 wherein the family, except Priyavrat, are partners. The agency claimed that Priyavrat received Rs 56.67 crore from Balaji and the funds allegedly had their source in MIL.
