The Enforcement Directorate (ED) has attached 24 properties of Tamil Nadu-based Pavai Alloys & Steel under the Prevention of Money Laundering Act, 2002 in a case of bank fraud. The value of the properties attached is Rs 34 crore, according to a press release.
The CBI registered a case under Section 120B of the Indian Penal Code and accordingly filed a charge sheet against Pavai Alloys and its five directors on November 13, 2017. Based on the CBI probe, a money laundering case was registered by the ED against the company and its five directors under the PMLA.
During the investigation, it was found that directors of Pavai Alloys had fraudulently availed of loans based on fabricated/fake balance sheet and defrauded Indian Bank to the tune of Rs 42.17 crore, the release said.
Ten immovable properties in Coimbatore and Namakkal districts in the name of the director of Pavai Alloys were identified and attached under the provisions of the PMLA. These properties are valued at Rs 23.50 crore.
The ED also identified and attached 14 more immovable properties in the name of the children of the directors. These are worth Rs 10.50 crore.