A significant bank fraud amounting to ₹4,957 crore has been brought under investigation by the Enforcement Directorate (ED). As part of the probe, raids were carried out at 14 locations in Mumbai and Delhi, targeting Pratibha Industries Limited, a private company based in Mumbai, and its directors. The company’s activities in TMT bars, pipes, steel production, and infrastructure projects have been scrutinized by authorities. During the searches, assets worth ₹5.4 crore, including bank accounts and mutual funds, were frozen by the ED. Additionally, crucial documents linked to the acquisition of immovable properties were seized. These assets are suspected to have been purchased using misappropriated funds diverted from bank loans.
The investigation was initiated based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) following a complaint by the Bank of Baroda. In the complaint, allegations were made against Pratibha Industries Limited and its directors, including Ajit Kulkarni, for defrauding a consortium of banks. Funds obtained through loans were reportedly diverted using fraudulent transactions and circular trading. It was revealed that the company’s account had been classified as a non-performing asset (NPA) on December 31, 2017, and was later declared fraudulent by the banks involved.
The involvement of accommodation entry providers was highlighted during the ED’s preliminary findings. Multiple bogus entities were allegedly utilized for layering funds and disguising the financial trail. These entities were said to have facilitated suspicious third-party transactions that diverted the misappropriated funds into the purchase of real estate and other assets.
The ED has reported that evidence of large-scale financial irregularities has been uncovered, and further investigations are being conducted to determine the full extent of the conspiracy. The role of other entities in aiding the diversion of funds is also being examined. With this operation, the ED aims to identify all individuals and organizations involved in the fraudulent activities while recovering the misappropriated funds. The alleged financial misconduct is believed to have caused substantial losses to the banking sector, which is now taking steps to address such fraudulent practices.
The investigation continues, and authorities remain focused on holding those responsible accountable for their actions. Further updates on the progress of the case are awaited.
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