The ED has taken major action against Arvind Remedies Limited, who defrauds many big banks including Punjab National Bank. The ED has raided the 637 crore bank fraud case. The ED team is continuously conducting search operations in Chennai, Kanchipuram, Kolkata and Goa. In this connection, the company’s promoter Arvind B.K. The locations of Shah, Director and Dummy Director have been raided.
The CBI had registered an FIR against Arvind Remedies Limited on 31 October 2016. A case was registered in CBI under fraud and conspiracy. On the basis of CBI FIR, ED started an investigation into money laundering on July 2021. The FIR alleges that the company and its promoter diverted the money taken from the bank to another place through fake papers and shell companies.
Shocking revelations in CBI investigation
CBI investigation revealed that the promoters of the company took the bank’s money in the shell companies and withdrawn it. In this sequence, ED examined about 294 bank accounts and prepared a full money trail. Actually PNB was the leader of this entire banking consortium. This consortium included United Bank of India, State Bank of India, IDBI Bank, Allahabad Bank, Karur Vaishya Bank, Indian Overseas Bank and Corporation Bank. Together these banks had given a loan facility of about Rs 704 crore to the company, but, between 2014 and 2015, all accounts were declared NPA and the outstanding amount reached Rs 637 crore.
History of Enforcement Directorate
When India got independence in 1947, the Foreign Exchange Regulation Act (FERA) was implemented to control cases related to foreign currency. It was seen by the Department of Economic Affairs of the Finance Ministry. ED was established in 1956. However, initially it was named Enforcement Unit, which was named Directorate of Enforcement in the year 1957. It was done under the Revenue Department in 1960 and has been doing the same thing since then. Today ED is counted among the most powerful investigative agencies in India.
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