ED raids in Punjab, Delhi-NCR in bank loan ‘fraud’ case

The money laundering case stems from a CBI FIR alleging cheating a consortium of banks led by the IDBI Bank to the tune of ₹988 crore by the promoters of SCTL and their associates

The Enforcement Directorate on Wednesday conducted searches at multiple premises in Delhi-NCR and Punjab as part of a money laundering investigation linked to an alleged ₹988 crore bank loan fraud case, official sources said.

The ED suspects that a large portion of the money (loan) availed from the banks using Letters of Credit were transferred abroad through “fake” transactions. (HT Photo)

The action is being undertaken against the promoters of a company, Shilpi Cables Technologies Ltd (SCTL), and some linked entities. Nine premises in Delhi-NCR and one in Jalandhar were part of the searches being conducted under the Prevention of Money Laundering Act (PMLA), the sources said.

The money laundering case stems from a CBI FIR alleging cheating a consortium of banks led by the IDBI Bank to the tune of ₹988 crore by the promoters of SCTL and their associates, they said.

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 the company managing director (MD) Manish Goel is under the scanner of the agency, as per the sources.