ED Files Prosecution Complaint Against Ruchi Global for ₹66 Crore Bank Fraud in Indore

The Directorate of Enforcement (ED) filed a Prosecution Complaint before the PMLA court in Indore on Thursday against 21 accused persons and entities in a bank fraud case involving M/s Ruchi Global Limited (now M/s Agrotrade Enterprises Limited). The case involves wrongful loss of approximately ₹66 crore to a consortium of banks.

Investigation revealed that Ruchi Global fraudulently availed non-fund-based credit facilities such as Letters of Credit (LCs) aggregating ₹66 crore from consortium banks—PNB, BOB, and J&K Bank—in favour of related associate concerns. The LCs were opened under false pretenses using fabricated documents, forged bills of exchange, and fake lorry receipts for purported agro-commodity purchases.

Proceeds were laundered through shell entities and reintegrated into the company's accounts within one to three days. After the company failed to honor the LCs on due dates, all credit devolved upon issuing banks. Earlier searches seized ₹23.50 lakh in unaccounted cash and froze bank accounts. A Provisional Attachment Order issued in February 2024 attached immovable property valued at ₹5.13 crore.