Bank fraud: ED attaches Rs 34-cr assets of steel company

After CBI registered a case against the firm in 2017 and filed charge sheet against its five directors, ED registered a case under Prevention of Money Laundering Act (PMLA). Based on the CBI case, a case was registered by the Enforcement Directorate Chennai Zone-II against the company and its directors under the provisions of PMLA 2002.

During the investigation, it was found that the directors of the company had fraudulently availed loans based on fabricated balance sheets and defrauded the Indian Bank, Tiruchengode, to the tune of Rs 42.17 crore. In the Investigation by the ED, 10 immovable properties located in Coimbatore and Namakkal districts, registered in the name of the director of Pavai Alloys and Steels, were identified. These properties, valued at Rs 23.50 crore, were attached.

Further, discreet inquires conducted by the ED resulted in the identification of 14 more immovable properties that were in the names of children of the directors of the private company. These assets, together valued at Rs 10.50 crores, were also attached.

In all, 24 immovable properties totally valued Rs 34 crores have been identified to be proceedings of crime and involved in the offence of money laundering. Therefore, these have provisionally been attached under PMLA, 2002, a press release from the agency said.