ED launches a money laundering investigation against BP Food Products in Madhya Pradesh.

BP Food Products Private Limited, headquartered in Gwalior, has been the subject of a money laundering probe by the Enforcement Directorate in connection with a fraud investigation.Ravi Prakash Bansal and his associates were arrested by the Central Bureau of Investigation on January 21 this year for allegedly defrauding the IDBI Bank, resulting in a loss of more than Rs 53 crore.The Enforcement Case Information Report (ECIR) has been registered by the Enforcement Department in this case by examining a copy of the CBI's FIR.Officials said the company had acquired credit facilities under a consortium agreement, with IDBI Bank sanctioning Rs 25 crore, State Bank of India Rs 20 crore, Ratnakar Bank Rs 11.29 crore, and Kotak Mahindra Bank Rs 5 crore, along with additional loans for working capital.

It began defaulting on payments and all units were closed after August 2017.In February 2018, the company's loan account was declared a non-performing asset (NPA), and the outstanding amount was Rs 42.95 crore, which had risen to Rs 53.43 crore by July 2019.It's worth mentioning that the Department of Education is prosecuting more than 40 ECIRs in Madhya Pradesh, including Vyapam.Officials described the money laundering probe underway as an internal document of the ED, rather than a FIR.

The Supreme Court had upheld the validity of several provisions of the Money Laundering Act (PMLA), which authorizes the ED to make arrests, carry out searches, seizures, and bind the proceeds of crime.Multiple issues were raised, including the absence of a procedure for starting an investigation and summoning, and the accused was not informed of the contents of the Enforcement Case Information Report (ECIR).The Apex court had ruled that a copy of the ECIR be given to the individual concerned in each case is not mandatory, however the same may be given at the time of arrest.