Mumbai, November 2, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has provisionally attached movable and immovable properties worth Rs 53.95 crore in a bank fraud case involving private company Parekh Aluminex Limited (PAL), which allegedly caused losses of more than Rs 2,200 crore to a consortium of banks led by Indian Overseas Bank and 16 other lenders.
The ED’s Mumbai Zone-I carried out the attachment under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, an official statement said on Monday.
With the latest action, the total value of assets attached by the agency in the case has reached Rs 546 crore, the statement added.
The money laundering investigation originated from an FIR registered by the CBI’s Economic Offences Wing (EOW), Mumbai, and EOB Mumbai against Parekh Aluminex Limited and others. The FIR invoked Sections 420 and 120-B of the Indian Penal Code, 1860, and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
According to the ED, its investigation found that PAL allegedly obtained loans from a consortium of banks by submitting inflated stock and debtor statements. The company’s loan accounts were subsequently declared non-performing assets (NPAs), involving an amount of Rs 2,296 crore.
The agency further stated that the JK Shah Group assisted in diverting proceeds of crime amounting to Rs 110.54 crore through various entities and individuals.
One of the beneficiaries allegedly received and enjoyed Rs 70.25 crore, which the ED said formed part of the total proceeds of crime of Rs 2,296.58 crore.
The ED had previously attached assets worth Rs 493 crore in the case. It has also filed a prosecution complaint (charge sheet) before the Special Court under the PMLA in Mumbai, which has taken cognisance of the offence, the statement said.
According to the agency, the alleged conspiracy caused wrongful losses to the consortium of banks led by Indian Overseas Bank and 16 other lenders.
The ED is examining incriminating documents recovered during search operations to identify other individuals involved in the bank fraud, the statement added.
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