ED Raids Across Three States in Rs 637 Crore Loan Fraud Case

Updated : Sep 02, 2025 11:42
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Editorji News Desk

New Delhi, Sep 2 (PTI) The Enforcement Directorate conducted searches on Tuesday across Tamil Nadu, West Bengal, and Goa as part of a money laundering investigation targeting a Chennai-based company involved in a Rs 637 crore bank loan fraud, official sources revealed.

Raids took place at locations in Chennai and Kanchipuram in Tamil Nadu, Kolkata, and various premises in Goa. These actions are part of a case against Arvind Remedies and its promoter, Arvind B Shah, among others, conducted under the provisions of the Prevention of Money Laundering Act (PMLA), sources said.

The money laundering case, initiated in July 2021, traces its roots back to an October 2016 CBI FIR against the accused company and its promoter for allegedly defrauding a consortium of lenders, led by Punjab National Bank (PNB), of an astounding Rs 637 crore.

In this investigation, authorities scrutinized annual reports of the company for the financial years 2009-10 to 2014-15, in addition to audited financials retrieved from the Ministry of Corporate Affairs (MCA). They also assessed 294 bank accounts, preparing an "intensive" money trail, according to the ED.

The analysis revealed that the funds were "siphoned off" using "shell" (dummy) entities controlled by the promoters, sources disclosed.

(Only the headline of this report may have been reworked by Editorji; the rest of the content is auto-generated from a syndicated feed.)

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