Ahmedabad: ED files chargesheet in Rs 28.54 crore money-laundering case against firms, directors in bank fraud case

Ahmedabad: The Enforcement Directorate (ED), Ahmedabad Zonal Office, filed a chargesheet in the special PMLA court here earlier this week against Hellios Tubealloys Pvt Ltd and its directors in a money-laundering case involving bank fraud of Rs 28.54 crore with the Bank of Baroda.ED initiated an investigation in this case on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against the company and others, alleging criminal conspiracy and cheating under Sections 120B and 420 of IPC, and under the Prevention of Corruption Act. The CBI filed a chargesheet in this case in Dec 2021, alleging that the company and its directors, Shantilal Sanghvi and Mahesh Sanghvi, cheated the bank.
ED's prosecution complaint is against the company, its directors, sister company SLS Stainless Pvt Ltd, Eckhardt Engineering Pvt Ltd, Hitendra Sanghvi, Pradeep Sanghvi, Zenith Strips Ltd, Rajesh Karwasra, and Scorodite Stainless India Pvt Ltd.According to ED, during the investigation under the Prevention of Money Laundering Act (PMLA), the agency found that the company and its director allegedly defrauded the bank to the tune of Rs 28.54 crore by diverting and siphoning bank funds to the sister concern companies without any genuine business transactions. Besides, the company issued bogus Letters of Credit to the banks to avail the loan funds. The directors deliberately submitted falsified stock statements and books of accounts of the company with the dishonest intention of causing wrongful loss to the Bank of Baroda.In Dec 2024, ED provisionally attached immovable properties valued at Rs 19.37 crore, which consisted of commercial land at Rajula in Saurashtra and a residential flat in Ahmedabad, under the provisions of PMLA.ED investigation revealed that the company was incorporated with the stated objective of trading in stainless steel, such as stainless-steel sheets, coils, plates, and fittings, and manufacturing different types of stainless-steel pipes and tubes. The company was given a credit facility aggregating Rs 29.67 crore by the Bank of Baroda.