Mumbai: ED attaches assets worth Rs 53.59 crore in Parekh Aluminex bank fraud case
The ED investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation’s (CBI) Economic Offences Branch (EOW), Mumbai, against Parekh Aluminex Limited and others for offences under Sections 420 and 120-B of the IPC and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
In a release on Monday, the Agency said PAL allegedly obtained loans from a consortium of banks by submitting inflated stock and debtor statements. The loan accounts of the company were subsequently declared Non-Performing Assets (NPAs), involving an amount of approximately Rs 2,296 crore.
The investigation revealed that the J K Shah Group allegedly assisted in diverting proceeds of crime amounting to Rs 110.54 crore through various entities and individuals.
The group was also among the beneficiaries of the proceeds of crime, having allegedly received and enjoyed Rs 70.25 crore, forming part of the total proceeds of crime of Rs 2,296.58 crore, which caused wrongful loss to a consortium of banks led by Indian Overseas Bank and 16 other banks.
The ED had earlier attached assets worth approximately Rs 493 crore in the case.
A prosecution complaint has also been filed before the Special Court (PMLA), Mumbai, which has taken cognisance of the offence.
With the latest attachment, the total value of assets attached in the case has reached approximately Rs 546 crore.
Further investigation is in progress, the Agency added.
TNT KM
