ED attaches ₹112.90 crore assets in LEEL Electricals' ₹376 crore bank fraud
Synopsis
The ED has frozen ₹112.90 crore in assets — spread across nine Indian states and as far as Houston, Texas — belonging to LEEL Electricals promoter Bharat Raj Punj and his family. The alleged ₹376 crore fraud involved inflated books, shell companies, and offshore fund routing to cheat SBI and IDBI Bank.
Key Takeaways
The Enforcement Directorate provisionally attached assets worth ₹112.90 crore under the PMLA, 2002 .
The attachment targets promoter Bharat Raj Punj of LEEL Electricals Limited (formerly Lloyd Electric and Engineering Limited) in an alleged ₹376 crore bank fraud.
Properties are spread across nine states including Delhi, Gujarat, and Maharashtra, plus a residential property in Houston, Texas .
The alleged fraud involved submitting manipulated financial statements to a bank consortium led by SBI and IDBI Bank .
Funds were allegedly routed through shell and related entities in India and transferred to overseas subsidiaries to conceal proceeds of crime.
The CBI had earlier registered an FIR and filed a charge sheet; the ED investigation is ongoing.
The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth approximately ₹112.90 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged ₹376 crore bank fraud involving M/s LEEL Electricals Limited (formerly Lloyd Electric and Engineering Limited), its principal promoter Bharat Raj Punj, and associated entities. The action was carried out by the ED's Jaipur Zonal Office.
Assets Attached Across Nine States and the US
The attached properties span a wide geographic footprint, covering Delhi, Uttarakhand, Gujarat, Madhya Pradesh, Telangana, Goa, Maharashtra, and Tamil Nadu. The portfolio includes land parcels, industrial plots, residential properties, bank balances, fixed deposits, and mutual fund investments.
Notably, the attachment also covers a residential property in Houston, Texas, jointly owned by Bharat Raj Punj and his wife Pooja Punj — which investigators allege represents proceeds of crime held outside India. The cross-border reach of this attachment underscores the ED's increasing use of PMLA provisions to pursue offshore assets.
How the Alleged Fraud Was Executed
The money laundering probe originates from a Central Bureau of Investigation (CBI) FIR registered in New Delhi under provisions of the Indian Penal Code and the Prevention of Corruption Act. The CBI's FIR and subsequent charge sheet allege that the company's promoters and senior officials conspired to defraud a consortium of banks led by the State Bank of India (SBI), also implicating IDBI Bank, causing a wrongful loss of around ₹376 crore.
According to investigators, the accused allegedly inflated the value of assets, inventories, and receivables in LEEL Electricals' books to project an artificially stronger financial position and continue availing credit facilities from the banking consortium.
Shell Companies and Overseas Routing
The ED's investigation found that diverted funds were allegedly routed through a network of promoter-controlled companies in India before being transferred to overseas subsidiaries under the guise of investments and loans — a structure designed to make recovery difficult. The siphoned funds were ultimately alleged to have been invested in immovable properties held in the names of related companies and family members.
Investigators further alleged that several of these properties were subsequently sold, with the proceeds used for personal and operational expenses of the promoter family, including those of Renu Punj, mother of Bharat Raj Punj. The assets were reportedly held through related and shell entities specifically to conceal the proceeds of crime.
Investigation Ongoing
The ED has confirmed that further investigation in the case is underway. This provisional attachment — a standard PMLA tool to freeze assets before formal adjudication — signals that the agency is building toward a prosecution complaint. Given the multi-state and cross-border nature of the alleged laundering network, the case is likely to involve further attachment orders as the probe advances.
Point of View
Shell entities, overseas subsidiaries, and finally real estate in the family's name, including abroad. What stands out is the Houston property attachment: cross-border PMLA action remains rare and legally complex, signalling that the ED is treating this as a high-priority case. The broader pattern — promoters using bank credit as a personal funding channel and then dispersing proceeds across jurisdictions — continues to expose gaps in lender due diligence at public-sector banks like SBI and IDBI. With investigation ongoing, further attachment orders and a prosecution complaint are likely the next milestones to watch.
NationPress
8 Jul 2026
Frequently Asked Questions
What is the LEEL Electricals bank fraud case?
The case involves alleged fraud of around ₹376 crore against a banking consortium led by SBI and IDBI Bank. The CBI alleged that LEEL Electricals' promoters submitted manipulated financial statements to fraudulently avail credit facilities, causing wrongful losses to the banks.
What assets has the ED attached in this case?
The ED has provisionally attached assets worth approximately ₹112.90 crore, including land, industrial plots, residential properties, bank balances, fixed deposits, and mutual fund investments across nine states and a residential property in Houston, Texas, jointly owned by Bharat Raj Punj and his wife Pooja Punj.
Who is Bharat Raj Punj?
Bharat Raj Punj is the principal promoter of LEEL Electricals Limited, formerly known as Lloyd Electric and Engineering Limited. He, along with family members and associated entities, is at the centre of the ED's money laundering investigation stemming from the CBI's FIR.
How were the alleged fraud proceeds concealed?
According to the ED, funds diverted from the banks were routed through a network of promoter-controlled companies in India and then transferred to overseas subsidiaries under the guise of investments and loans. The proceeds were ultimately invested in immovable properties held in the names of related companies and family members, some of which were later sold.
What happens next in the ED investigation?
The ED has confirmed that investigation is ongoing. The provisional attachment under PMLA is a precursor to a formal prosecution complaint before the adjudicating authority. Further attachment orders are possible as the probe into the alleged cross-border laundering network continues.
