ED attaches properties worth Rs 110 crore in Lakhani Group bank fraud case

The Directorate of Enforcement (ED) on Tuesday said that it has provisionally attached seven immovable properties worth Rs 110 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a bank fraud case related to M/s Lakhani India Limited, M/s Lakhani Rubber Udyog Pvt Ltd, Lakhani Apparel Pvt Ltd and other group companies.

 

“ED initiated investigation on the basis of multiple first information reports (FIRs) registered during the year 2021 and 2023 by the Central Bureau of Investigation (CBI), Delhi and Chandigarh, under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, against M/s Lakhani India Limited and other group companies along with promoters PD Lakhani and Suman Lakhani, related to offences of criminal conspiracy, cheating and fraud committed against various banks,” the investigative agency said in a press statement.

 

ED investigation revealed that M/s Lakhani India Limited and group companies had jointly defrauded Indian Overseas Bank, Punjab National Bank and Allahabad Bank by misappropriation and diversion of funds to other group companies, conspiring, misrepresenting facts and cheating, resulting in a fraud of approximately Rs 162 crore to the complainant banks.

 

The investigation further revealed that out of the business and capital loans and credit facilities disbursed by the complainant banks, the Lakhani Group — on the directions of the promoters — made sales to related parties at a loss, repaid loans of sister concerns, made unusual interest payments to the directors, etc.

 

While the investigation is under progress, ED has so far detected and provisionally attached five commercial plots measuring more than 20 acres, a two-acre farmhouse and a commercial flat-cum-office in the National Capital Region (NCR).