MUMBAI: The Enforcement Directorate (ED) has launched a massive crackdown in one of India’s biggest corporate loan frauds, conducting raids across 15 locations in Mumbai, Pune, Goa, and Chennai. The raids are linked to an alleged ₹450 crore bank loan fraud involving Talwalkars Better Value Fitness Ltd (TBVFL), once a prominent national gym and health club chain.
The probe stems from multiple FIRs registered by the Mumbai Economic Offences Wing (EOW) and other law enforcement bodies. Promoters and directors of TBVFL are accused of misappropriating loans and Non-Convertible Debentures (NCDs) secured from Axis Bank and the now-defunct Laxmi Vilas Bank.
Funds Diverted via Shell Companies, ₹200 Cr Property Seized
According to ED officials, TBVFL routed sanctioned loan funds through shell companies, falsely presenting them as vendor payments. These funds were then allegedly redirected back to businesses owned by the promoters. The company reportedly defaulted on ₹206.35 crore to Axis Bank and ₹180 crore to Laxmi Vilas Bank.
During the raids, ED officials recovered incriminating documents, digital evidence, ₹8 lakh in unaccounted cash, and properties worth ₹200 crore. The investigation also exposed inflated royalty payments, manipulated share premiums, and questionable overseas transactions.
The agency stated that the funds were systematically siphoned off under the pretext of legitimate business expenses but were ultimately used to enrich the promoters’ private assets.
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Wake-Up Call for Financial Vigilance
Though this case centres around a corporate borrower, the scam has sounded alarm bells for individual and small-scale borrowers as well. Financial experts are urging citizens to be cautious, verify lender credentials, scrutinise loan documents, track disbursals, regularly monitor credit reports, and report any suspicious activity without delay.
The incident underscores the vulnerability of India’s banking system to high-value frauds and the critical need for regulatory surveillance.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.