The Enforcement Directorate (ED) has arrested Vijay Choudhary, promoter of Zoom Developers, in connection with a bank loan fraud case to the tune of Rs 2,650 crore under the Prevention of Money Laundering Act (PMLA).
Zoom Developers is one among the top wilful defaulters in the country that owes about Rs 3,000 crore to at least 26 banks. Choudhary is charged with money laundering through various shell companies abroad.
According to the ED, Choudhary formed five companies in the UK and Switzerland. These five firms entered into contracts with Zoom Developers for so called engineering purpose. Based on the contracts, the company got various Indian bank guarantees and counter guarantees to the foreign bankers. The bank loan raised through guarantees was utilised by Zoom Developers and its associates firms for purchase of properties.
“It is observed that majority of the contracts are paper-contracts only (i.e., no physical work/services/supply was ever made against them) and no work was done, Zoom Developers has frequently sought extension of bank guarantees/ counter guarantees, issued by their Indian bankers, submitting false grounds for extension,” said the ED statement.
