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The Directorate of Enforcement has provisionally attached movable and immovable properties worth about ₹53.95 crore in a money laundering case linked to an alleged bank fraud involving Parekh Aluminex Limited and others.
The attachment was carried out by the ED’s Mumbai Zone-I under the Prevention of Money Laundering Act, 2002.
With the latest action, the total value of assets attached by the agency in the case has reached approximately ₹546 crore.
Probe Based on CBI and Mumbai Police Cases
The ED investigation was initiated on the basis of FIRs registered by the Central Bureau of Investigation, Economic Offences Wing Mumbai and EOB Mumbai against Parekh Aluminex Limited and others.
The cases invoked provisions including Sections 420 and 120-B of the Indian Penal Code and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
According to the ED, the investigation concerns an alleged bank fraud that caused wrongful loss to a consortium of banks led by Indian Overseas Bank and 16 other lenders.
The agency said Parekh Aluminex Limited allegedly obtained loans from the banking consortium by submitting inflated stock statements and debtor statements.
The loan accounts were later declared non-performing assets involving an amount of about ₹2,296 crore.
ED Alleges Diversion of Loan Funds
The ED investigation has alleged that funds obtained by Parekh Aluminex were diverted through different entities and individuals.
The agency said the J K Shah Group allegedly assisted in diverting proceeds of crime amounting to about ₹110.54 crore through various entities and persons.
According to the ED, the group was also among the beneficiaries of the alleged proceeds of crime and received and enjoyed approximately ₹70.25 crore.
The agency has treated these amounts as part of the wider proceeds of crime allegedly generated through the bank fraud.
The total alleged proceeds of crime in the case have been pegged at approximately ₹2,296.58 crore.
Fresh Attachment Takes Total to ₹546 Crore
The ED had already attached assets worth about ₹493 crore in connection with the same investigation.
The latest provisional attachment of ₹53.95 crore has taken the cumulative value of assets attached in the case to approximately ₹546 crore.
The properties covered by the latest order include both movable and immovable assets.
The ED has not provided a detailed breakup of each attached property in the press release.
The attachment remains provisional and is subject to proceedings under the Prevention of Money Laundering Act.
Prosecution Complaint Already Filed
The ED has also filed a prosecution complaint before the Special Court under the PMLA in Mumbai.
The court has taken cognisance of the alleged offence.
The filing of the prosecution complaint marks a further stage in the agency’s money laundering investigation, while attachment proceedings continue against properties identified as alleged proceeds of crime or assets of equivalent value.
Consortium of 17 Banks Allegedly Suffered Loss
The alleged fraud involved a consortium led by Indian Overseas Bank along with 16 other banks.
According to the ED, Parekh Aluminex Limited secured credit facilities by allegedly presenting inflated figures relating to stock and debtors.
The subsequent classification of the loan accounts as NPAs resulted in an alleged wrongful loss of around ₹2,296 crore to the lending consortium.
The agency is also examining the movement of funds through entities and persons allegedly involved in diverting or receiving the proceeds.
The latest attachment indicates that the ED continues to trace properties and financial assets allegedly linked to the diverted funds.
Further Investigation Continues
The ED has said that further investigation in the matter is underway.
The case involves allegations of fraudulent borrowing, diversion of bank funds and laundering of the resulting proceeds through multiple entities.
With assets worth around ₹546 crore now provisionally attached, the investigation remains focused on identifying additional proceeds of crime and tracing the financial trail connected with the alleged ₹2,296.58 crore bank fraud.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
