Did Gujarat's ED Charge Hellious Tubealloys with Rs 28.54 Crore Bank Fraud?
Synopsis
In a significant financial scandal, the Enforcement Directorate has charged Hellious Tubealloys Private Limited and its directors with a staggering Rs 28.54 crore bank fraud involving the Bank of Baroda. This case marks a critical juncture in the agency's ongoing efforts to combat financial crimes, as investigations reveal serious allegations of deceit and misappropriation.
Key Takeaways
ED has filed a charge sheet against Hellious Tubealloys Private Limited.
Alleged fraud amount stands at Rs 28.54 crore.
Investigation originated from a CBI FIR.
HTPL is accused of diverting funds to a sister concern.
Provisional attachment of properties worth Rs 19.37 crore has been issued.
Ahmedabad, Feb 13 (NationPress) The Enforcement Directorate (ED) has submitted a charge sheet against Hellious Tubealloys Private Limited (HTPL) and its directors regarding an alleged bank fraud amounting to Rs 28.54 crore involving the Bank of Baroda, as confirmed by the central agency on Friday.
This complaint was lodged by the Ahmedabad Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, following an investigation prompted by an FIR filed by the Central Bureau of Investigation (CBI)'s Anti-Corruption Branch in Gandhinagar.
The FIR addresses violations under Sections 120-B and 420 of the Indian Penal Code, 1860, along with Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
The case was initiated from a complaint by the Deputy General Manager of the Bank of Baroda's Ahmedabad Region against HTPL and its directors, Shantilal Sanghvi and Mahesh Sanghvi, for allegedly defrauding the bank.
According to the ED, its investigation has uncovered that HTPL received credit facilities totaling Rs 29.67 crore from the bank.
Out of this, approximately Rs 14 crore was allegedly misappropriated and sent to a related entity, SLS Stainless Private Limited, without any legitimate business transactions.
The central agency has also accused the company of issuing fraudulent Letter of Credits to secure loan funds and submitting falsified stock statements and accounting records with deceitful intentions.
Furthermore, HTPL is charged with obtaining a bank guarantee of about Rs 4.50 crore and misusing the residual loan amount for term loan repayments, charges, and taxes, leading to a wrongful loss of Rs 28.54 crore to the bank.
As part of its recovery efforts, the bank has retrieved Rs 5.64 crore through the auction of mortgaged assets and other recovery strategies, as stated by the central agency.
During the investigation, the ED executed search operations at various locations and confiscated incriminating documents.
The CBI's Anti-Corruption Branch in Gandhinagar filed a charge sheet related to this case on December 28, 2021.
Based on its findings, the ED has issued a provisional attachment order for immovable properties valued at Rs 19.37 crore.
Further investigations are currently ongoing.
Point of View
The allegations against Hellious Tubealloys highlight the ongoing battle against financial fraud in India. The Enforcement Directorate's proactive stance in addressing these issues reflects a commitment to upholding integrity within the financial system. As investigations continue, it is crucial for authorities to ensure accountability and restore public trust in banking institutions.
NationPress
11 May 2026
Frequently Asked Questions
What is the amount involved in the alleged bank fraud?
The alleged bank fraud involves an amount of Rs 28.54 crore.
Which bank is involved in the fraud case?
The Bank of Baroda is the bank involved in this fraud case.
Who are the directors of Hellious Tubealloys?
The directors of Hellious Tubealloys Private Limited are Shantilal Sanghvi and Mahesh Sanghvi.
What actions did the Enforcement Directorate take?
The ED filed a charge sheet against HTPL and its directors and conducted search operations, seizing incriminating documents.
What laws are being invoked in this case?
The case involves violations under the Prevention of Money Laundering Act (PMLA) and the Prevention of Corruption Act.
