ED Raids Uncover Massive Bank Loan Fraud Scandal

The Enforcement Directorate is investigating a Rs 989 crore bank loan fraud allegedly perpetrated by the former promoters of Shilpi Cables Technologies Ltd. The ED recently conducted raids in multiple locations as part of this money laundering probe, which links back to a 2021 CBI FIR.

The Enforcement Directorate (ED) intensified its crackdown on financial fraud, conducting raids in connection with a Rs 989 crore bank loan scandal involving former promoters of Shilpi Cables Technologies Ltd (SCTL). The Delhi-registered company, now insolvent, is accused of diverting bank funds for unintended purposes.

Recent searches were executed across nine locations in the National Capital Region and in Jalandhar, Punjab. The investigation under the Prevention of Money Laundering Act (PMLA) is linked to a 2021 CBI FIR that highlights alleged deception against a bank consortium led by IDBI Bank by SCTL's promoters.

The ED suspects large portions of the loan funds were illicitly transferred overseas through fake transactions. The role of former managing director Manish Goel is being scrutinized. Attempts to obtain comments from the former promoters or their legal representatives were unsuccessful.