ED raids Chandigarh pharma firm and promoters in bank fraud probe

The Enforcement Directorate (ED) has raided premises linked to Parabolic Drugs and its promoters in connection with a money laundering probe into a bank fraud case. The Central Bureau of Investigation (CBI) had previously registered a case against the company and its promoters for allegedly defrauding a consortium of banks.

The Enforcement Directorate (ED) on Friday raided several premises linked to Chandigarh-based pharmaceutical company Parabolic Drugs and its promoters as part of a money laundering probe into a ₹1626.74-crore bank fraud case, people familiar with the development said.

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The raids were carried out at 17 locations in Delhi, Mumbai, Chandigarh, Panchkula and Ambala in connection with a Prevention of Money Laundering Act (PMLA) case registered by ED.

The ED case stems from a 2021 FIR registered by the Central Bureau of Investigation (CBI) against the company and its promoters Vineet Gupta and Pranav Gupta among others, the people said. The CBI had booked the top executives of the company in December 2021 for allegedly defrauding a consortium led by Central Bank of India of ₹1626.74 crore. It subsequently raided their premises.

In its complaint to CBI, the bank alleged that the modus operandi of the fraud perpetrated by the accused involved in obtaining credit facilities from the banks based on fictitious documents and that the sanctioned funds were misused. It was also alleged that once the funds were diverted to alternate non-consortium bank accounts, they were thereafter siphoned away by the accused for purchasing assets and/or to personally enrich themselves, thereby causing losses to the banks.

According to CBI officials, the private company was engaged in manufacturing drugs and allegedly defrauded the consortium of banks through criminal conspiracy and forgery, and funnelled loans it took for other uses.

HT reached out to Parabolic Drugs for a response but did not get one immediately.