Bank loan 'fraud': ED raids in Delhi-NCR, Punjab

New Delhi, Jun 25 (PTI) The Enforcement Directorate on Wednesday conducted fresh searches as part of a money laundering investigation against the former promoters of a Delhi registered insolvent company in an alleged Rs 989 crore worth bank loan fraud case, official sources said.

The case is against Delhi-based Shilpi Cables Technologies Ltd (SCTL) which designed and manufactured wires and cables for the automobile and telecom sector. Insolvency proceedings were initiated against the said company in 2017.

Nine premises in the national capital region (NCR) and one in Jalandhar (Punjab) were covered during the latest raids carried out under the Prevention of Money Laundering Act (PMLA), the sources said.

The ED had carried out the first round of searches in this case in December, 2024.

The money laundering case stems from a 2021 CBI FIR that alleged that the promoters of the company and their associates cheated a consortium of banks led by the IDBI Bank to the tune of Rs 989 crore, the sources said.

"The CBI FIR alleged that the said entity took loans from banks for business purposes and diverted the bank funds for purposes not intended by the loans." "Thereafter, the promoters defaulted on repayment of loans causing wrongful loss to the banks amounting to Rs 989 crore," the ED had said in a statement issued last year.

The ED suspects that a "large" portion of the money (loan) availed from the banks using LsC (Letters of Credit) were transferred abroad through "fake" transactions. The role of former managing director (MD) Manish Goel is under the scanner of the agency, as per the sources.

The former promoters of the company or their legal representatives could not be contacted for a comment on the ED action. PTI NES DV DV