ED attaches Zoom Developers' Rs 1,000-cr US land over loan fraud

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In a first, the Indore unit of the enforcement directorate (ED) has attached 1,280 acres in California, US, in what is being termed as one of the biggest bank loan fraud cases in the country worth Rs 2,200 crore, committed by Zoom Developers and its promoter, Vijay Choudhary.

"ED Indore attaches, under Prevention of Money Laundering Act (PMLA) 1,280 acres of land in California, USA of Zoom Developers Pvt Ltd and Vijay Choudhary in a bank fraud case," the agency tweeted on Thursday. Indore falls under the jurisdiction of ED, Ahmedabad. The attached property is being valued at Rs 1,000 crore.

ED sources said an arrest warrant has been issued against Choudhary, who is absconding.

According to sources, the company took a loan of Rs 2,200 crore for various projects in European countries. However, no work was undertaken even as the entire money was allegedly siphoned, sources said. Reportedly, Zoom Developers had also taken loans worth Rs 2,650 crore from numerous banks under pretext of developing other projects. However, the company did not undertake any development on the US property.

Suspecting the role of some of the banks in granting loans, the Central Bureau of Investigation had also initiated a separate probe, sources said.

Zoom Developers operates from Indore and Mumbai. One of the directors of Zoom Developers, Sharad Kabra was arrested last month by the Indore ED and is currently under judicial custody.

Earlier, Kabra, it is learnt, was arrested for fraudulently taking Rs 10 crore loan from Punjab National Bank. Kabra had allegedly used forged documents to obtain loans for overseas projects worth Rs 410 crore. The company, however, used the money for other purposes and defaulted on the loan.