The Enforcement Directorate (ED) on Tuesday carried out searches in two separate money laundering investigations linked to alleged bank loan frauds, amounting to over ₹1,000 crore, said officials. In one case, the ED raided multiple locations across Tamil Nadu, West Bengal, and Goa as part of its money laundering probe into a ₹637-crore loan fraud involving Chennai-based pharmaceutical company Arvind Remedies Ltd and its promoter Arvind B Shah. Searches were conducted across premises in Chennai, Kanchipuram, Kolkata, and parts of Goa under the provisions of the Prevention of Money Laundering Act (PMLA). The money laundering case, registered by the ED in July 2021, is based on a 2016 FIR filed by the Central Bureau of Investigation (CBI) against the company and Shah for allegedly defrauding a consortium of banks, led by Punjab National Bank (PNB), to the tune of ₹637 crore. Shell companies An analysis of the company’s financial statements from 2009-10 to 2014-15, along with data from the Ministry of Corporate Affairs (MCA) and over 294 bank accounts, revealed that the funds were systematically siphoned off through shell entities controlled by the accused person, said sources. In a separate case, the ED raided 10 locations — nine in Delhi and one in Pune — in connection with a ₹425-crore loan fraud involving Gupta Exim India Pvt. Ltd. (GEIPL). According to the FIR, the company, its promoters, and directors diverted loan funds sanctioned by PNB (formerly Oriental Bank of Commerce) to related entities. ED sources said, the accused allegedly routed the loan proceeds through multiple accounts to mask the fraudulent transactions. Both actions are part of the agency’s ongoing crackdown on financial crimes and banking sector frauds, particularly those involving public sector banks. Published on September 2, 2025

Source: The Hindu Business Line