Enforcement Directorate Cracks Down on Arvind Remedies in Massive Bank Fraud Case

The Enforcement Directorate conducted searches in Tamil Nadu, West Bengal, and Goa amid a money laundering investigation against Arvind Remedies. The probe relates to a Rs 637 crore bank loan fraud involving its promoter, Arvind B Shah, under the Prevention of Money Laundering Act. Intensive investigations have revealed funds were siphoned off through shell entities.

In a sweeping operation across multiple states, the Enforcement Directorate on Tuesday launched searches in Tamil Nadu, West Bengal, and Goa. The raids target Arvind Remedies and its promoter Arvind B Shah, linked to a Rs 637 crore bank loan fraud case under the Prevention of Money Laundering Act.

Sources indicated that the Chennai-based company is under scrutiny following a 2016 CIB FIR accusing it of cheating a consortium of lenders led by Punjab National Bank (PNB). Officials have scrutinized financial records, from annual reports to audited financials, and examined 294 bank accounts to trace a complex money trail.

Initial findings suggest funds were illicitly diverted via shell entities controlled by the promoters. This comprehensive investigation seeks to uncover the full extent of the fraud and hold the responsible parties accountable.

(With inputs from agencies.)