The ED, Ahmedabad Zonal Office, has provisionally attached movable and immovable assets worth ₹9.19 crore under the PMLA, 2002, in connection with a bank fraud case involving M/s Sayan Colors Private Limited and others. This is the second attachment order issued in the case, bringing the total value of attachments to date to ₹9.62 crore.
The Enforcement Directorate (ED), Ahmedabad Zonal Office has provisionally attached movable and immovable properties worth Rs 9.19 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a bank fraud case involving M/s Sayon Colours Pvt Ltd and others.
The ED initiated the investigation on the basis of an FIR registered by the CBI, Banking Securities and Fraud Branch (BS&FB), Mumbai against M/s Syon Colours Private Limited (M/s SCPL), its Director Paresh D. Patel, M/s Shamrock Chemie Private Limited and its Directors and others for causing fraudulent loss of Rs 71.88 crore to banks and diverting these funds to their associate entities through sham agreements and using circular transactions to obtain higher credit limits from banks.
The investigation revealed that M/s SCPL diverted loan funds to acquire properties in the names of its promoters and group entities and transferred loan funds to group companies directly or by misusing letter of credit facilities. The companies entered into fictitious agreements and conducted fraudulent transactions based on these agreements to divert loan funds. Additionally, M/s Syon Colors Private Limited and M/s Shamrock Chemie Private Limited circularly routed funds among themselves and among group companies, inducing banks to extend credit facilities.
The attached properties include four agricultural lands acquired directly from the diversion of loan funds. Additionally, the provisional attachment order also includes term deposits, two industrial lands, a residential flat, and equity shares held in two demat accounts.
This is the second attachment order issued in this case and the total value of attachment so far is Rs 9.62 crore.
Further investigation is underway in the matter.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.