"We have attached properties worth Rs 13.19 crore of Ramesh Nagpal, propreitor of Radhey Trading company," an ED official told IANS.
The financial probe agency's action comes in the wake of the money laundering case it registered in October 2013 taking cognigance of an Economic Offences Wing case.
The official said that during investigation, it was revealed that Radhey Trading Company has fraudulently obtained huge funds from NSEL by trading on the exchange platform against non-existent or fictitious sale of their commodities (i.e. black pepper and red chilly)."
"The money trail revealed that a huge chunk of proceeds of crime was transferred to Krishna Traders Company and Harsha Traders -- sister concerns of Radhey Trading Company.
According to the ED official, it was alleged that the accused in the case hatched a criminal conspiracy to defraud the investors, induced them to trade on the platform of NSEL by creating forged documents like bogus warehouse receipts, falsified the accounts and thereby committed criminal breach of trust of over 13,000 investors to the tune of Rs 5,600 crores.
"Out of the said proceeds of Rs 5,600 crore, total liability of Radhey Trading Company was to the tune of Rs 34.59 crore," the officer said.
Till date, the ED has attached properties worth Rs 2,713 crore in the case.
The NSEL scam involves alleged misappropriation of funds and commodities and embezzlement too.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.