The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has filed a Prosecution Complaint against Ms Hellious Tubealloys Private Limited and its directors in a money laundering case involving Bank of Baroda, concerning misappropriation of funds amounting to ₹28.54 crore. The action is taken under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on an FIR registered by CBI, ACB, Gandhinagar, under which the company and its directors were booked for offences punishable under Sections 120-B and 420 of IPC, 1860, and Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act.
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Key Fraud and Fund Diversion
The ED investigation revealed that Ms Hellious Tubealloys Private Limited and its directors fraudulently siphoned off ₹28.54 crore of bank funds. The funds were diverted to sister concern companies without any genuine underlying business transactions. The company also issued bogus Letters of Credit (LCs) to obtain bank loans.
It was found that the directors deliberately submitted falsified stock statements and manipulated books of accounts, clearly intending to cause wrongful loss to Bank of Baroda. The fraudulent actions were structured to misappropriate bank funds and disguise them as legitimate business transactions.
Search Operations and Provisional Property Attachment
During the investigation, the ED conducted search operations at multiple locations, seizing incriminating documents and evidence of the fraudulent transactions. Based on these findings, a Provisional Attachment Order was issued, temporarily attaching immovable properties worth ₹19.37 crore. The attached properties include office units and other immovable assets linked to the company and its directors.
The ED emphasized that this measure aims to protect the interests of Bank of Baroda and other financial institutions. The action also sends a clear message that any form of bank fund misappropriation or money laundering will not be tolerated.
Ongoing Investigation and Further Action
The ED has clarified that the investigation is still underway. Based on additional evidence, there is a possibility of further property attachments and legal actions against the company and its directors.
This case highlights a deliberate attempt by Ms Hellious Tubealloys Private Limited and its directors to divert bank funds through fraudulent LCs and falsified stock records, converting illicit proceeds into assets and investments.
The ED’s intervention demonstrates that the agency is vigilantly tracking all aspects of money laundering and bank fraud, ensuring accountability and safeguarding public and institutional financial interests.
The enforcement action against Ms Hellious Tubealloys Private Limited and its directors under PMLA underscores the seriousness with which ED treats bank fraud and financial misappropriation. The attachment of immovable properties worth ₹19.37 crore, combined with ongoing legal proceedings, sends a strong signal that fraudulent financial practices will face strict scrutiny and decisive action.
Vinay ji, if required, I can also prepare a detailed visual explainer showing fund diversion flows, bogus LC operations, and asset attachments to complement this newsroom package, ready for publication.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
