New Delhi, Sep 2 (UNI) The Enforcement Directorate (ED) is conducting search operations at premises linked to Arvind Remedies Ltd and its promoters in Chennai, Kolkata, Goa and Kanchipuram in connection with a PMLA case related to Bank loan fraud of Rs 637 crore.
According to the sources, the action is part of a PMLA investigation into alleged bank fraud & siphoning of funds via shell entities.
Punjab National Bank (PNB) filed a complaint with CBI against Arvind Remedies Ltd and its promoter Arvind B Shah and others for Bank Fraud amounting to Rs 637 crore.
PNB was the leader of consortium of banks consisting of various banks namely UBI, SBI, IDBI Bank, Allahabad Bank, Karur Vysya Bank, Indian Overseas Bank, Corporation Bank which extended various credit facilities (cash credit, term loan and non-fund based) to the tune of Rs 704.75 crore against which Rs 637.58 crore was outstanding as per the books of the banks.
All the bank loan accounts had been declared as NPA between 2014 and 2015. In addition, Can Bank Factors Limited (which was not a member of the consortium) granted credit facilities to the tune of Rs 7.61 crore to the accused.
Based on the complaint, the CBI registered an FIR in 2016 against Arvind Remedies Limited and Others Led by Arvind B Shah for allegedly cheating consortium of banks to the tune of Rs 637 crore.
The FIR was lodged under sections 120-B read with sections 420, 46, 468, 471 and 477-A of IPC.
Based on the CBI’s FIR the ED initiated a PMLA investigation against the accused in 2021.
“Annual Reports from FY 2009-10 to FY 2014-15 were collected. Further audited financials were also gathered from MCA. Approximately. 294 bank accounts were obtained and analysed and an intensive money trail was prepared. The analysis of the bank accounts shows that the bank funds were siphoned off through shell entities controlled by the promoters,” said the ED official.
A search action is being conducted today at multiple locations to collect evidence relating to proceeds of crime, assets held by the directors, promoters secretly. Directors, promoters of the main entity, auditor and a few known dummy directors are being covered in the search operations.
The search operations include premises at Chennai, Kanchipuram, Kolkata and in Goa.
