ED Takes Action in Rs 10.9 Crore Bank Fraud Case in Gujarat
Synopsis
The Enforcement Directorate has filed a complaint under the PMLA linked to a significant bank fraud case involving Shree Om Fab and its associates. This complex case unfolds amidst serious allegations of financial misconduct.
Key Takeaways
ED files complaint under PMLA related to bank fraud.
Involves Rs 10.9 crore linked to Shree Om Fab.
Investigation initiated by a complaint from Oriental Bank of Commerce.
Charges include submission of false documents .
Assets worth Rs 3.67 crore recovered during searches.
Ahmedabad, March 27 (NationPress) The Enforcement Directorate (ED) has initiated legal proceedings under the Prevention of Money Laundering Act (PMLA), 2002, regarding a suspected bank fraud case linked to Shree Om Fab and associated entities, as confirmed by officials on Friday.
The investigation commenced after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) based on a formal complaint from the Oriental Bank of Commerce.
A chargesheet was subsequently submitted by the CBI on December 16, 2019, outlining the results of its investigation.
The ED reported that Shree Om Fab, along with Shree Baba Textile and Shree Laxmi Fab—businesses owned by Ranjit Loonia—received credit facilities totaling Rs 9.95 crore, which swelled to about Rs 10.9 crore due to accrued interest as the accounts fell into default.
The agency accused Loonia of colluding with a panel valuer, Mayur Shah, and others to acquire loans by presenting “false and misleading business records” and “forged documentation”.
Additionally, the ED indicated that inflated valuation assessments of mortgaged assets were orchestrated to secure elevated credit limits.
Officials emphasized that the sanctioned cash credit limits were not utilized for legitimate business operations.
“The loan funds were redirected to various bank accounts without any authentic business transactions, withdrawn as cash, and used for purposes such as purchasing bullion and repaying housing loans,” the agency reported.
Throughout the investigation, searches at locations associated with the accused led to the recovery of valuables valued at approximately Rs 3.67 crore.
The ED also provisionally seized two immovable properties worth Rs 53.50 lakh at the time of attachment, with their current market valuation approximated at Rs 4.65 crore.
“The proceeds of crime have been identified, traced, and attached in accordance with the provisions of the PMLA,” the agency stated, adding that further investigations are ongoing.
Point of View
It's crucial to highlight the implications of this case. It showcases the ongoing efforts by law enforcement to tackle financial crimes, providing a clear message that fraudulent activities will not be tolerated. The situation warrants close monitoring as investigations proceed.
NationPress
13 May 2026
Frequently Asked Questions
What is the basis of the ED's complaint?
The ED's complaint is based on an alleged bank fraud case involving Shree Om Fab and others, initiated after a complaint from the Oriental Bank of Commerce.
How much money is involved in this case?
The case involves approximately Rs 10.9 crore, which includes accrued interest.
What actions has the ED taken?
The ED has filed a prosecution complaint and attached two immovable properties valued at Rs 53.50 lakh.
Who are the key figures in this case?
Key figures include Ranjit Loonia, the owner of Shree Om Fab, and Mayur Shah, a panel valuer allegedly involved in the fraud.
What is the current status of the investigation?
The investigation is ongoing, with further actions expected from the ED.
