Bank loan fraud: ED attaches Rs 26-cr assets of Gujarat company, promoters

The attached assets include residential and commercial lands, and their total value is Rs 26.25 crore.

The Enforcement Directorate (ED) on Monday said it has attached assets worth over Rs 26 crore of a Vodadara-based company in a money laundering probe linked to an alleged bank loan fraud of about Rs 2,654 crore.

The properties attached provisionally under the Prevention of Money Laundering Act (PMLA) belong to Diamond Power Infrastructure Limited (DPIL) and its former directors, promoters and their families.

The attached assets include residential and commercial lands, and their total value is Rs 26.25 crore.

This is a second such attachment order by the ED against these accused after a August 2018 action where properties worth Rs 1,112.72 crore were attached.

The company DPIL, the ED said in a statement, had availed term loans, working capital loans, external commercial borrowings and non-convertible debentures from a consortium of 19 banks and institutions.

DPIL used “paper transactions with shell companies and related entities to avail higher credit facilities from the banks and diverted the funds, which ultimately resulted in loss of Rs 2,654.4 crore to the consortium of 19 banks led by Bank of India”.

The ED slapped money laundering charges against the accused after studying a 2018 CBI FIR against them.

It (ED) later filed a chargesheet in this case on December 26, 2018, which is “pending” befor a special PMLA court in Ahmedabad, Gujarat.

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