Under the Prevention of Money Laundering Act (PMLA), 2002, the Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹81.88 crore in a large-scale bank fraud involving the Vindhyavasini Group of Companies and its promoters. The action, initiated by ED’s Mumbai Zonal Office-II, follows a criminal conspiracy that led to a loss of ₹764.44 crore to the State Bank of India (SBI).
The promoters, Vijay Rajendra Prasad Gupta, Ajay R. Gupta, and their associates, stand accused of orchestrating a complex web of fraud by colluding with bank officials, chartered accountants, loan consultants, and other intermediaries. The case was originally registered by the Mumbai Unit of the Central Bureau of Investigation (CBI) under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act (PC Act).
Fake Documents, Shell Firms, and Property Investments Exposed
CBI’s initial findings were supported by ED’s detailed probe, which uncovered how loans were fraudulently obtained in the name of various group entities using forged documents. Once disbursed, the loan amounts were illegally diverted through more than 50 shell companies, eventually being laundered into real estate acquisitions and cash withdrawals.
According to officials, the promoters purchased multiple properties, not just in their own names, but also in the names of family members and benami entities, thereby concealing ownership. These properties are located in various cities and include residential flats, commercial units, and land parcels.
ED’s investigation also revealed that the accused had withdrawn more than ₹42 crore in cash, further complicating the financial trail and indicating efforts to obscure the origin and usage of the funds.
Key Arrest and Future Actions in Progress
The ED arrested Vijay Rajendra Prasad Gupta, the main accused and promoter of the group, on March 26, 2025, under Section 19 of the PMLA. He is currently lodged in judicial custody, and further interrogation is underway. Officials indicate that more arrests and asset attachment orders are likely as the investigation progresses.
The attached assets—both movable and immovable—are now frozen under the ED’s powers, pending further proceedings. Sources suggest that the financial gains from the scam were not only used to acquire personal wealth but also allegedly rerouted into further criminal enterprises.
This case highlights the systemic exploitation of banking procedures through coordinated manipulation by professionals and insiders, prompting calls for tighter scrutiny of high-value loans, and a strengthening of anti-fraud mechanisms within financial institutions.
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Ongoing Nationwide Crackdown
The ED’s latest action is part of a broader effort to combat financial crimes and corruption. Simultaneously, ED teams are conducting searches in four cities across Madhya Pradesh, including Bhopal, in connection with fake bank challan scams involving liquor contractors. These actions reflect the agency’s ongoing nationwide drive to unearth deep-rooted financial irregularities and safeguard public money.
The Vindhyavasini Group case stands as a significant example of how criminal networks exploit banking systems through shell firms, bribery, and document forgery. Enforcement agencies continue to pursue leads to unravel the full extent of the conspiracy and trace hidden assets.