ED attaches properties worth Rs 483 crore in bank fraud case

The Enforcement Directorate (ED) has provisionally attached immovable properties consisting of commercially diverted land of 2,70,374 sq ft along with shopping mall in Nagpur worth Rs 483 crore of KSL & Industries Ltd, Mumbai under Prevention of Money Laundering Act (PMLA), 2002, in a bank fraud case.

KSL & Industries Ltd, Mumbai is one of the group company of Tayal group of Companies, read a statement from ED.

"The Directorate initiated an investigation under PMLA on the basis of three FIRs of CBI(B & FC) against three different companies of Tayal group of Companies viz. Actiff Corporation Ltd, Jaybharat Textiles & Real Estate Ltd, KKTL and Eskay Knit (India) Ltd for cheating and fraudulently availing loans totalling to Rs 524 crore from Bank of India and Andhra Bank during the year 2008," the statement read.

It was revealed in the investigation that during the year 2008, these Mumbai based companies of Tayal group availed loan to the tune of Rs 524 crore by defrauding the Bank of India and Andhra Bank. It was also revealed that for the purpose of money laundering, they had created a maze of shell companies which were used for routing of the diverted funds.

Funds were routed through these shell companies to the companies of the said Tayal group and used up for the creation of assets in the name of KSL & Industries Ltd, Mumbai. These immovable properties in the form of a mall situated at Nagpur having a value of Rs 483 crore have been provisionally attached being proceeds of crime and are involved in money laundering. Earlier in another similar case involving UCO Bank properties worth Rs 234 crore of Tayal group were also attached. Total attachment is worth Rs 717 crore.

It may be recalled that Tayal group of Companies, promoted by one of the family members of Pravin Kumar Tayal was resorting to siphoning off funds obtained from UCO Bank and the accounts became NPA.

Money trails of the same were identified and prime properties at Mumbai having a market value of Rs 234 crore were also attached under PMLA. A prosecution complaint has also been filed in the matter before the learned Special Court under PMLA for a commission of an offence under Section 3 of PMLA.

Further investigation in the case is underway.