The Enforcement Department arrested the director of Hoewelai Jinsu, Hong Kong, RAS, China Limited, in connection with an alleged fraud case against lenders by taking credit facilities under the guise of merchant trade.
The accused, Anup Nagaral, had recently returned to India and appeared before the Central Bureau of Investigation (CBI) which arrested him in December 2021 in another case. He was then released on bail. He was not appearing before the special court under the Prevention of Money Laundering Act 2002 (PMLA) to stand trial in the case being considered by the Directorate of Enforcement (ED).
The court issued an arrest warrant against him, on the basis of which the agency arrested Nagaral. He was placed in judicial detention until January 17. He is one of the accused in the indictment filed by the ED on July 28 of last year.
Nagaral is the director of Hoewelai Jinsu, Hong Kong, RAS, China Limited, which was one of the parties in the buyer side of a tripartite merchandise trade with Spices Trading Corporation Limited (STCL) and overseas buyers / sellers. It is alleged that two of the entities, FMPL and FEIPL, did not respect the tripartite agreements. They had guaranteed that payments would be made by foreign buyers.
Naveen Sriram, president of FMPL & FEIPL, and its then general manager Sudheer Sriram had signed an act of personal and social guarantee in favor of STCL against the latter agreeing to finance to facilitate exchanges between the parties concerned. The social guarantee may be invoked by STCL in the event of failure to reimburse contributions.
In accordance with the arrangement, STCL issued irrevocable letters of credit with a validity period of 90 days. However, the letters of credit were transferred due to non-payment by the foreign buyers, which had been guaranteed by FMPL and FEIPL. This resulted in an unwarranted loss of $ 249.57 million for STCL.
In this case, which is based on an early information report recorded by the High Ground Police Station in Bengaluru City, the agency previously seized assets worth 185.67 crore in Maharashtra, Punjab. , Delhi, Gujarat, Bengaluru and Bellary.