ED Mumbai files prosecution complaint against Digambar Rohidas Agawane in loan scam

Directorate of Enforcement (ED), Mumbai, has filed a Prosecution Complaint (PC) against Digambar Rohidas Agawane & 8 others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, before the Special PMLA Court, Mumbai. The Special PMLA Court, Mumbai, has taken cognizance of the Prosecution Complaint (PC) on March 4th 2024. Notably ED initiated investigation on the basis of 12 FIRs registered by the Maharashtra State Police under various sections of IPC, 1860 against Digambar Rohidas Agawane & others. ED investigation revealed that Digambar Agawane was involved in taking fraudulent loans by double-mortgaging properties with more than one financial institution and intentionally mortgaging disputed properties with financial institutions for availing loans. He then misused these loans for his own personal gain by diverting them through various related entities. Further, he used to take loans by creating dummy directors, promising them employment and purchasing paper companies. Ultimately, he siphoned off the loan proceeds taken in the name of dummy directors for his own personal gain. Digambar Agawane was also involved in fraudulent activities, such as luring investors to invest money in his companies with the promise of double returns. However, he never returned the amount to the investors. He also used to cheat people by fraudulently executing sale deeds and illegally acquiring land from them. He would threaten them and extort money. ED investigation till date reveals that Proceeds of Crime generated by accused amounts to Rs. 12.8 Crore. The Proceeds of Crime amount is expected to increase. During the course of the investigation, Digambar Agawanewas arrested under section 19 of PMLA 2002 on January 5th 2024 and is in Judicial Custody.