The Enforcement Directorate (ED) has attached assets worth ₹204.27 crore of the Ardor group of companies in connection with a bank loan fraud amounting to ₹488 crore.
The assets include three office premises, 23 residential plots and four shops and office premises in Ahmedabad, besides a non-agricultural land in Surat.
The ED's money laundering probe is based on seven cases registered by the CBI, alleging that the Ardor group of companies and its directors conspired with unknown bank officials to cheat a consortium of banks of about ₹488 crore.
According to the agency, Bharat Shah, Fenil Shah and Geetaben Shah -- directors of Ardor International Limited, Ardor Global Private Limited and Chem Edge International Private Limited, -- indulged in re-routing of the funds received from the Bank of India-led consortium.
The round-tripping was done to allegedly inflate the financials of the companies to meet the eligibility for getting more credit facilities from banks.
They also allegedly diverted and misused the funds. “Further, they mortgaged assets of other group companies for getting higher credit limits. False stock statements and financials were submitted to the consortium. The companies did not repay the amount owed to the lenders, due to which their accounts turned non-performing assets,” said an ED official.
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