The ED searched 11 premises in Karnal, Delhi and Goa in the Mahesh Timber money laundering probe. The agency alleges manipulated letters of credit and forged trade papers were used to route the proceeds.
The Directorate of Enforcement (ED), Chandigarh Zonal Unit, has conducted search operations at 11 premises in Karnal, Delhi and Goa linked to Ashok Mittal, Sourabh Dhingra, Bharat Bhushan Mittal, Raman Singhal and others as part of an ongoing money laundering investigation involving M/s Mahesh Timber Pvt Ltd.
The searches were carried out on June 16 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The investigation stems from a CBI FIR registered against M/s Mahesh Timber Pvt Ltd, its directors and others for alleged offences under the Indian Penal Code and the Prevention of Corruption Act.
According to the ED, the case relates to the fraudulent enhancement of Foreign Letters of Credit (FLCs) through unauthorised SWIFT amendments that were not reflected in the bank’s Finacle system. The alleged fraud caused a wrongful loss of about Rs 155.21 crore to Oriental Bank of Commerce and other consortium banks.
The agency’s investigation found that M/s Mahesh Timber Pvt Ltd, in alleged conspiracy with associated entities and individuals in India and Singapore, transferred around Rs 195.02 crore through manipulated FLCs without any genuine import of timber.
Customs verification reportedly established that several Bills of Entry and Bills of Lading submitted to banks were forged and fabricated. The ED alleged that a network of firms, including Amazon Exports Pte Ltd, Mahesh Timber Singapore Pte Ltd, Traffic Media India Pvt Ltd, BVM Shipping Pte Ltd and Pearl Maritime Pte Ltd, was used to create a facade of timber imports from Singapore to India, enabling the fraudulent transfer of funds through inflated FLCs.
The investigation has highlighted the alleged roles of Ashok Kumar Mittal, Raman Singhal and Deepak Singla. The ED said Mittal and Singhal held directorial or key managerial positions in several of the entities involved during the relevant period.