The probe agency, two days ago, conducted searches at 15 locations in Delhi and NCR belonging to Kwality Limited and the then promoters or directors, Sanjay Dhingra and Siddhant Gupta, and other shell companies related to them.During the search operations, cash amounting to Rs. 1.3 crore and various evidence related to assets and bank accounts held through several shell companies by the promoters were recovered and seized."It was found that drivers and employees of the promoters were made directors in such shell companies," a probe agency officer said.The ED, during the search operation, found high-end luxury cars and demat accounts having an investment value of about ₹2.5 crore, etc., which were then subsequently frozen.The ED initiated investigations on the basis of an FIR registered by CBI against Dhingra and Gupta for allegedly cheating banks.The CBI FIR alleged that the said erstwhile entity, through its directors, indulged in falsification and fabrication of books of accounts by misrepresentation of sales, purchases, debtors and creditors and thereby cheated a consortium of banks.The FIR quantified the loss to the consortium banks to the tune of ₹1,400 crore.The ED, in its probe, found out that the then promoters and directors manipulated the books of accounts to show higher sales and debtors.

Shell firms, fake directors: ED's Kwality probe reveals

894,1094,1120,70,2067,3130

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