The Enforcement Directorate has provisionally attached assets worth ₹53.95 crore in the Parekh Aluminex bank fraud investigation, taking cumulative attachments to approximately ₹546 crore. The agency alleges that Parekh Aluminex Ltd obtained loans from 17 banks using inflated stock and debtor statements, resulting in a suspected ₹ 2,296.58 crore fraud. Investigators also allege that JK Shah Group helped divert ₹110.54 crore through various entities, with ₹70.25 crore received by the group. The money laundering investigation remains ongoing.
Parekh Aluminex Bank Fraud Case Sees ED Attach Properties Worth ₹53.95 Crore
The Enforcement Directorate has provisionally attached properties worth ₹53.95 crore in connection with an alleged ₹2,296-crore bank fraud in Parekh Aluminex Ltd and a consortium of 17 banks.
The Enforcement Directorate (ED) has attached movable and immovable properties worth ₹53.95 crore through its Mumbai zonal office, and the investigation into the Parekh Aluminex bank fraud has widened.
The latest action was carried out under the Prevention of Money Laundering Act (PMLA), 2002, taking the total value of attached assets in the case to about ₹546 crore.
An ED statement said Parekh Aluminex Ltd (PAL) is alleged to have defrauded a consortium of 17 banks, causing a loss of around ₹2,296.58 crore to the lenders.
The agency said its investigation revealed that PAL allegedly obtained loans by submitting inflated stock and debtor statements to the lending institutions.
The agency’s probe found that the company’s loan accounts were later declared as non-performing assets (NPAs), putting the banking consortium at risk of huge financial losses.
Parekh Aluminex Bank Fraud and the Role of JK Shah Group
Parekh Aluminex Ltd had availed of lending facilities from a consortium of 16 other banking institutions led by Indian Overseas Bank.
During its probe, the ED has allegedly found that JK Shah Group was involved in diversion of proceeds of crime to the tune of Rs 110.54 crore through various entities and individuals.
The agency further said that the group was one of the beneficiaries of the diverted and received funds and had assets worth around Rs 70.25 crore.
The assets are said to be part of the total proceeds of crime generated through the alleged bank fraud, the ED probe revealed.
The agency is also investigating the movement of funds and the roles of entities and individuals believed to have been involved in the diversion and laundering of the loan proceeds.
The investigation is trying to determine how the alleged proceeds were transferred and who benefited from the transactions and whether assets were purchased with funds derived from the loans.
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CBI Cases and Earlier ED Property Attachments
The ED started investigating money laundering based on first information reports registered by the Economic Offences Wing (EOW) of the Central Bureau of Investigation (CBI).
The cases are related to cheating and criminal conspiracy under sections 420 and 120-B of the Indian Penal Code, 1860.
They are also connected with the alleged offences under Section 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988, as alleged in the cases in hand.
Before the latest attachment, the ED had provisionally attached assets worth about ₹493 crore in the Parekh Aluminex investigation.
The agency has also filed a prosecution complaint before the Special Court under the PMLA in Mumbai, which has taken cognisance of the money laundering offence.
With the attachment of ₹53.95 crore more, the total value of properties attached in the case so far is about ₹546 crore.
Further Investigation Into the Alleged Bank Fraud
The latest seizure is another step by the agency to trace alleged proceeds of crime and identify assets linked to the transactions under investigation.
However, the provisional attachment and the allegations under investigation do not constitute proof of criminal culpability, as the allegations are still subject to judicial proceedings.
The ED said further probe is underway, including examination of fund movement and alleged involvement of persons and entities connected with the transactions.
The case is a reminder of the financial and regulatory fallout from alleged irregularities in lending arrangements at big banks, especially when multiple banks suffer losses from common borrowers.
Sprouts News will continue to follow developments in the investigation, including any further attachment orders, prosecution proceedings, and disclosures by the investigating agencies.
