The Enforcement Directorate (ED) said on Monday that its Mumbai Zone-I office has provisionally attached movable and immovable properties worth ₹53.95 crore belonging to Parekh Aluminex Limited (PAL) under the Prevention of Money Laundering Act (PMLA), 2002, in a bank-fraud case that caused a wrongful loss of over ₹2,200 crore to a consortium of banks.

Source: Enforcement Directorate statement via Mumbai Press

₹53.95 croreFresh assets attached by ED Mumbai Zone-I
₹546 croreTotal attachments in the case so far
₹2,296 croreConsortium loans declared NPA
₹110.54 croreProceeds allegedly diverted via JK Shah Group

With the latest order, the total value of assets attached in the case has reached ₹546 crore, the agency said. The ED had earlier attached assets worth about ₹493 crore, and a prosecution complaint has been filed before the Special Court (PMLA) in Mumbai, which has taken cognisance of the offence.

Source: Enforcement Directorate statement via Bumppy

The money-laundering investigation was initiated on the basis of an FIR registered by the CBI's Economic Offences Wing in Mumbai against Parekh Aluminex Limited and others, for offences under Sections 420 and 120-B of the IPC and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.

According to the ED, the company allegedly obtained loans from the consortium — led by Indian Overseas Bank and comprising 16 other banks — by submitting inflated stock and debtor statements. The loan accounts were later declared non-performing assets (NPAs) for an amount of ₹2,296 crore. These are the agency's allegations; the matter is before the court.

The agency further alleged that the JK Shah Group assisted in diverting proceeds of crime amounting to ₹110.54 crore through various entities and persons. The ED said it is examining incriminating documents recovered during search operations to identify other players in the alleged fraud, and that further investigation is under progress.