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ED freezes 5.4 crore assets in 4,957 crore bank fraud probe

Jan 05, 2025 06:50 AM IST

The ED has frozen assets worth ₹5.4 crore in a ₹4,957 crore bank fraud case involving Pratibha Industries Ltd, following raids in Mumbai and Delhi.

Mumbai/New Delhi: The Enforcement Directorate (ED) has frozen immovable assets worth 5.4 crore as part of its investigation into a 4,957 crore bank fraud allegedly involving the private firm M/s Pratibha Industries Ltd. The action follows searches conducted on Thursday at 14 locations across Mumbai and Delhi.

ED freezes <span class='webrupee'>₹</span>5.4 crore assets in <span class='webrupee'>₹</span>4,957 crore bank fraud probe
ED freezes 5.4 crore assets in 4,957 crore bank fraud probe

The frozen assets include bank balances and mutual funds, according to agency sources. Documents related to additional immovable properties were also recovered during the raids and are under scrutiny, they added.

The ED’s investigation stems from a case registered in 2023 by the Central Bureau of Investigation (CBI) against M/s Pratibha Industries Ltd, four of its former directors, and other unidentified individuals, based on a complaint filed by Bank of Baroda. The bank alleged that the company defrauded a consortium of banks of 4,957 crore.

According to the complaint, between 2014 and 2017, M/s Pratibha Industries Ltd and its then directors allegedly conspired to cause significant financial losses to the banks while gaining wrongfully by diverting loan funds through fraudulent transactions and circular trading. The loan account was declared a Non-Performing Asset in 2017.

The ED’s probe has revealed that the company’s promoters purportedly utilised multiple accommodation entry operators to layer loan funds through shell entities. Suspicious third-party transactions were allegedly conducted to divert funds into various companies, which were subsequently used to acquire immovable assets, the sources said.

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