ED Files Supplementary Prosecution Complaint in ₹700 Crore Bank Fraud Case Against RP Infosystems.

Headnote:

The Directorate of Enforcement, Kolkata has filed a Supplementary Prosecution Complaint under the PMLA, 2002 before the Special Court (PMLA), Kolkata, arraigning M/s Ontrack Systems Ltd. and Hari Balasubramanian as accused in a ₹700 crore bank fraud and money laundering case involving M/s R P Infosystems Ltd. The complaint alleges concealment, possession, acquisition, and use of proceeds of crime through shell entities and misuse of credit facilities obtained from a consortium of banks.

Background:

• ED initiated investigation based on FIRs registered by CBI, BS&FC, Kolkata under various provisions of the IPC, 1860 and the Prevention of Corruption Act against M/s R P Infosystems Ltd. and its Directors.

• The CBI has filed two charge sheets in the matter till date.

Supplementary Prosecution Complaint

• On 12 December 2025, ED filed a Supplementary Prosecution Complaint before the Hon’ble Special Court (PMLA), Kolkata.

• Through this complaint:

– M/s Ontrack Systems Ltd. has been arrayed as an accused for committing the offence of money laundering by concealment, possession, acquisition and use of Proceeds of Crime (POC).

– Hari Balasubramanian has been arraigned for knowingly facilitating and failing to prevent misuse of company accounts and assets for money laundering.

Findings of ED Investigation

• M/s R P Infosystems Ltd. availed various credit facilities from a consortium of banks by submitting false and fabricated stock statements and financial documents.

• The company defaulted on repayments and allegedly cheated banks to the tune of approximately ₹700 crore.

• Against the sanctioned credit facilities, the company opened multiple Letters of Credit (LCs) in favour of various shell companies.

• These shell entities discounted the LCs using fake tax invoices, challans, and lorry receipts, without any actual business transactions.

• In several instances, substantial funds were diverted to third parties for further laundering and concealment of proceeds of crime.

Earlier Action

• ED had earlier issued two Provisional Attachment Orders (PAOs) dated:

– 26 March 2018, and

– 25 July 2024,

attaching assets worth ₹31.89 crore in the case.

• A Prosecution Complaint and a Supplementary Prosecution Complaint have already been filed before the Special Court (PMLA), Kolkata in this matter.

Status

• Further investigation is under progress under the provisions of the PMLA, 2002.