The Enforcement Directorate (ED) has intensified its crackdown on a major financial fraud case in Mumbai, attaching properties valued at approximately Rs 70 crore. These assets, comprising flats and plots, are linked to a money laundering investigation involving Parekh Aluminex Ltd and other entities accused of defrauding banks of Rs 2,296 crore in loans.
Details of the Attached Properties
The recently attached properties are held in the name of Kamlesh Kanungo, his family members, and entities that are beneficially owned and controlled by him. This move is part of a broader effort to recover assets in the high-profile case.
Cumulative Asset Attachments
To date, the ED has attached total assets worth Rs 493 crore belonging to Kamlesh Kanungo, his wife, and entities under their control. This significant amount underscores the scale of the alleged financial misconduct.
Background of the Money Laundering Case
The ED's money laundering case is based on a Central Bureau of Investigation (CBI) FIR filed against Parekh Aluminex Ltd, its late promoter Amitabh Arun Parekh, Kamlesh Kanungo, and others. The FIR alleges that the accused fraudulently obtained loans from a consortium of banks by submitting inflated stock and debtor statements.
Impact on Banks
As a result of these actions, the bank and the company's loan accounts, totaling Rs 2,296 crore, were declared Non-Performing Assets (NPA). This has caused substantial financial loss to the consortium of banks involved.
Broader Implications
This case highlights ongoing challenges in the financial sector, particularly concerning loan fraud and money laundering. The ED's proactive measures aim to deter such activities and ensure accountability in corporate governance.
The investigation continues as authorities work to unravel the full extent of the fraud and recover additional assets to mitigate the losses suffered by the banking institutions.
