Enforcement Directorate Raids Linked to Major Bank Loan Fraud

The Enforcement Directorate conducted searches in Delhi linked to a money laundering case against the former promoters of Kwality Ltd, involving alleged bank loan fraud. The investigation follows a 2020 CBI FIR accusing the company of cheating a bank consortium of over Rs 1,400 crore.

The Enforcement Directorate launched a crackdown on several locations in Delhi on Wednesday as part of a money laundering investigation involving Kwality Ltd, sources revealed.

The investigation is backed by a 2020 CBI FIR alleging that the company misled a bank consortium led by the Bank of India. The alleged fraud is said to involve more than Rs 1,400 crore.

Sources indicated that raids, conducted under the Prevention of Money Laundering Act, target the premises linked to the former promoters, directors, and other key persons of the liquidated dairy firm.

(With inputs from agencies.)