Corruption
ED Raids Kwality Ltd, Ice Cream Company, in ₹1,400 Crore Bank Fraud Case Registered by CBI
New Delhi – The Enforcement Directorate (ED) launched a series of searches on Wednesday at multiple locations across Delhi and its neighboring regions in connection with a money laundering probe linked to the former promoters of the now-liquidated dairy giant, Kwality Ltd.
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Sources confirmed that around a dozen premises are being raided under the Prevention of Money Laundering Act (PMLA). The investigation stems from a 2020 First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against Kwality Ltd. and its directors. The FIR alleges that the company deceived a consortium of 10 banks, led by the Bank of India, causing financial losses exceeding ₹1,400 crore.
The case involves accusations of inflating financial statements and misappropriating loan funds. ED officials are targeting the residences and offices of the company’s former promoters, directors, and other key individuals as part of the ongoing investigation.
From Ice-Cream Pioneer to Financial Scandal
Kwality Ltd., once a leading name in the dairy industry, began as an ice-cream manufacturing company before expanding into a diversified range of milk-based products. The company’s former directors, are under scrutiny in the probe.
The ED’s action underscores its commitment to addressing financial fraud and ensuring accountability in high-profile cases involving substantial public funds. Further updates on the investigation are awaited.