The Enforcement Directorate has attached assets worth ₹44.09 crore of entities belonging to Rao Dan Singh, MLA of Mahendragarh in Haryana, and others in connection with an alleged bank fraud case against Allied Strips Limited and others, said the agency on Thursday (September 26, 2024).

The properties include 31 flats and land parcel (size 2.25 acre) situated at Harsaru village in Gurugram of entities belonging to Mr. Singh and his son Akshat Singh. “Flats and land parcels in Delhi, Gurugram, Rewari (Haryana) and Jaipur (Rajasthan) belonging to entities linked with Suncity Projects Pvt. Ltd. and ILD Group have also been attached,” it said.

The ED probe is based on a First Information Report registered by the Central Bureau of Investigation on a complaint that the accused persons and entities committed fraud by siphoning off and diverting funds, causing a wrongful loss of more than ₹1,392.86 crore to a consortium of banks led by Canara Bank. Allied Strips Limited was admitted to insolvency proceedings and was eventually purchased by another company.  

The agency said searches in the case led to identification of various assets and seizure of ₹1.42 crore in cash.

“It was revealed that entities linked to Rao Dan Singh, MLA, have received approximately ₹19 crore of the bank-diverted funds from Allied Strips Limited and the same was invested to purchase the flats and land parcels. These entities indulged in window dressing of books of accounts by squaring off the amount by assigning the same to other individuals. Rao Dan Singh and his family members are yet to join the investigation,” said the ED.

As alleged by the agency, the modus operandi of those involved in the bank loan ‘fraud’ included diversion of the funds received in the form of unsecured loans and advances, writing off debts of various debtors, bogus transactions, etc. and taking cash in return which had been invested for buying of land and other long term purposes.