Financial institution fraud: ED seizes Rs 6 cr money after raids on Ahmedabad agency

New Delhi, October 31

The Enforcement Directorate has seized Rs six crore cash after it raided an Ahmedabad-based company in connection with a money laundering probe linked to an alleged Rs 488 crore bank fraud case, the central probe agency said on Saturday.

It said Rs 5.99 crore cash and some foreign currency was seized on Friday after it raided six residential and office premises of the consultancy and builder group – True Value Group and Vipul and Manish Associates, it said in a statement.

ED’s money laundering case, filed under the criminal provisions of the Prevention of Money Laundering Act (PMLA), in this alleged bank loan fraud is linked to the Ardor group of companies.

“The Ardor group of companies and its directors, in connivance with unknown bank officials, had cheated and caused wrongful loss to the consortium of banks amounting to about Rs 488 crore,” said the ED.

It alleged that Vipul and Manish Associates and True Value Management Consultant Pvt Ltd “floated numerous dummy companies and made their relatives and associates directors of these companies for committing circular trade to inflate books of accounts of Ardor group companies”.

“This was done to facilitate them to obtain huge funds from consortium of banks which later became NPA (non-performing assets),” it said.

Assets worth over Rs 204 crore have been attached by the ED in this case in the past. PTI

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