Enforcement Directorate Seizes ₹54 Crore in Major Bank Fraud Case
The Enforcement Directorate has seized assets worth ₹54 crore linked to a major bank fraud case involving Parakh Aluminex Ltd.
Mumbai, November 2 (Daily Kiran) : The Enforcement Directorate (ED) has taken significant action in a bank fraud case exceeding ₹2,200 crore, temporarily seizing assets valued at ₹53.95 crore linked to Parakh Aluminex Limited (PAL). This operation was carried out under the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED’s Mumbai Zone-1 office, the agency has now confiscated assets worth a total of ₹546 crore in this ongoing investigation. The inquiry was initiated based on FIRs filed by the Central Bureau of Investigation (CBI), the Economic Offences Wing (EOW) of Mumbai, and the Enforcement Directorate itself.
Charges have been filed against PAL and other accused under relevant sections of the Indian Penal Code, including Sections 420 and 120-B, as well as under the Prevention of Corruption Act, 1988. The investigation revealed that the company allegedly secured loans from a consortium of banks based on inflated documents concerning stock and liabilities. Subsequently, these loans were declared non-performing assets (NPAs), totaling over ₹2,296 crore.
The agency has identified that the JK Shah Group played a crucial role in this alleged fraud, assisting in the laundering of ₹110.54 crore in proceeds of crime through various entities and individuals. The ED claims that one beneficiary managed to gain ₹70.25 crore, part of the total alleged criminal proceeds amounting to ₹2,296.58 crore.
Previously, assets worth ₹493 crore had already been attached in this case. The ED has also filed a prosecution complaint (chargesheet) with the special PMLA court in Mumbai, which has acknowledged the case.
The investigation indicates that a consortium of 17 banks, led by Indian Overseas Bank, suffered substantial financial losses due to this alleged conspiracy. The ED is currently examining documents seized during raids to identify additional individuals and entities involved in the bank fraud.
The agency has stated that the investigation is ongoing, with plans for further action to trace the flow of funds and uncover the roles of other potential beneficiaries.
