ED Cracks Down on Rs 11 Crore Bank Loan Fraud

The Enforcement Directorate initiated searches in Ahmedabad linked to a money laundering probe involving Rs 11 crore. The case involves Ranjitkumar J Loonia, who allegedly used forged documents to secure bank loans. Three businesses engaged in gray cloth trading are under investigation for fund diversion.

The Enforcement Directorate (ED) launched extensive searches in Ahmedabad on Wednesday as part of a significant money laundering investigation concerning a massive bank loan fraud amounting to Rs 11 crore, according to official reports.

This investigation is rooted in a FIR filed by the Central Bureau of Investigation (CBI), stemming from a complaint lodged by the Oriental Bank of Commerce. Allegedly, companies including Shree Om Fab, Shree Baba Textile, and Shree Laxmi Fab, all under the ownership of businessman Ranjitkumar J Loonia, secured cash credit facilities using forged documents and later diverted the funds, officials claimed.

The businesses involved in this case are primarily engaged in the trading of gray cloth materials meant for suiting and shirting. Currently, three different premises in Ahmedabad are under the scrutiny of the ED, with the alleged illicit proceeds totaling Rs 10.95 crore, officials confirmed.

(With inputs from agencies.)