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CHANDIGARH: The Enforcement Directorate (ED) has filed a prosecution complaint against footwear manufacturer Lakhani India Limited, its promoter Parmeshwar Dayal Lakhani, and other accused in connection with an alleged ₹162 crore bank fraud and money laundering case. The case centers on the alleged misuse and diversion of loan funds obtained from three public sector banks. According to the central agency, the company and its associated entities used the borrowed money for unauthorized purposes instead of the approved objectives, causing severe financial losses to the lenders.
Following the filing, the special court for CBI, PMLA, and NIA cases in Panchkula issued notices to the accused on Friday. Special CBI Judge Vijayant Sehgal scheduled the next hearing in the matter for January 18, 2027. After hearing the accused, the court will consider taking cognizance of the offense under the Prevention of Money Laundering Act (PMLA). This legal procedure has been initiated in accordance with the provisions of Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita (BNSS).
Court Procedure and Filing Details
The Enforcement Directorate had formally submitted the prosecution complaint before the Panchkula special court on November 12. Because the regular special judge was on leave that day, the matter was placed before a duty judge. Given the voluminous nature of the complaint and the extensive supporting documents filed alongside it, the court had ordered a thorough scrutiny and sorting of the records before proceeding further. With notices now officially served to the accused, the judicial hearing process is set to move forward.
The ED initiated its money laundering probe based on multiple First Information Reports (FIRs) registered by the Central Bureau of Investigation (CBI) in Delhi and Chandigarh during 2021 and 2023. These FIRs leveled allegations of criminal conspiracy, cheating, and misappropriation of bank funds against Lakhani India Limited, its group companies, and promoters Parmeshwar Dayal Lakhani and Suman Lakhani. Apart from the flagship firm, the investigation also encompasses Lakhani Rubber Udyog Private Limited, Lakhani Apparel Private Limited, and other affiliated group units.
Allegations of Fund Diversion
According to the investigating agency, these companies and the individuals linked to them are accused of causing a wrongful loss of approximately ₹162 crore to Indian Overseas Bank, Punjab National Bank, and Allahabad Bank. The ED claims that the entities secured various credit facilities under the pretext of business operations and capital requirements, but subsequently transferred the disbursed funds into the accounts of related group companies. Through this mechanism, the loans were allegedly utilized for purposes entirely different from those sanctioned by the banks.
The financial transactions uncovered during the investigation reportedly include selling goods at a loss to related entities, repaying the existing debts of other group companies, and making unusual interest payments to directors. The ED alleges that these transactions were structured to siphon bank funds to other units in violation of the sanctioned loan terms, and that they were executed under the instructions of the promoters. However, the court is yet to hear arguments on these charges, and the judicial process will advance only after the defense presents its side.
Prior Attachment of Assets
Earlier, in April 2025, the Enforcement Directorate had provisionally attached seven immovable properties under the PMLA as part of the same investigation. The total value of these attached assets was estimated at over ₹110 crore. The agency took this step to secure the alleged proceeds of crime and prevent their sale or transfer. The attached properties comprise five commercial plots spread across roughly 20 acres, a farmhouse built on two acres, and a commercial flat-cum-office located in the National Capital Region.
With the submission of the prosecution complaint, the case has transitioned from the investigation stage to the next phase of judicial proceedings. The special court will now decide on taking cognizance of the offense under the PMLA after granting a hearing to the accused. Both the prosecution’s arguments and the response of the accused during the January 18, 2027 hearing will be crucial in determining the future course of legal action. For now, the alleged roles of the company, its promoters, and the associated group entities remain under judicial consideration.
