What Happened in the Bank Fraud Case Involving Rs 28 Crore Seized by the ED?
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Synopsis
The Enforcement Directorate has taken significant action against Sunstar Overseas Ltd and its affiliates in a massive fraud case. With properties worth over Rs 28 crore seized, this investigation reveals a complex web of financial misconduct that has defrauded multiple banks.
Key Takeaways
- ED seizes properties worth Rs 28.36 crore.
- Investigation linked to a bank fraud exceeding Rs 950 crore.
- Former directors of Sunstar Overseas Ltd implicated.
- Laundering through a network of shell entities revealed.
- Legal actions include arrests and asset attachment.
Gurugram, June 27 (NationPress) The Enforcement Directorate has confiscated immovable assets totaling Rs 28.36 crore situated in Delhi, Gurugram, Faridabad, Sonipat, Amritsar, and Greater Noida in connection with a bank fraud case exceeding Rs 950 crore, according to an official announcement.
This property seizure was executed pursuant to the provisions of the Prevention of Money Laundering Act (PMLA), 2002, against Sunstar Overseas Ltd and other affiliated parties. The cumulative value of assets attached in this case has now reached Rs 322.55 crore, as stated by the official.
The ED's inquiry was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation, Anti-Corruption Branch, Chandigarh, against Sunstar Overseas Ltd (SOL) and its former directors -- Rohit Aggarwal, Rakesh Aggarwal, Naresh Aggarwal, Sumit Aggarwal, among others -- under various sections of the IPC, 1860, for offenses including fraud, criminal misappropriation, criminal breach of trust, and cheating, resulting in a wrongful loss exceeding Rs 950 crore to a consortium of nine lending banks led by Karur Vyasya Bank.
The investigation revealed that the former directors and promoters of SOL engaged in laundering the loan through a network of related, controlled, and shell entities.
It was also found that these individuals regained direct and indirect control by misusing the Corporate Insolvency Resolution Process (CIRP) proceedings of the National Company Law Tribunal (NCLT).
In January 2024, the ED carried out searches under section 17 of the PMLA, resulting in the seizure of Rs 1.19 crore in cash and 226 grams of gold.
By July 2024, the ED had arrested three key conspirators -- Rakesh Gulati (CA), Paramjeet Sharma, and Ajay Yadav -- involved in the diversion of loan funds alongside the former directors and promoters under section 19 of the PMLA.
In August 2024, an additional Rs 294 crore worth of properties were attached in this case, a decision confirmed by the Adjudicating Authority (PMLA).
A Prosecution Complaint was filed on August 29, 2024, under sections 44 and 45(1) of the PMLA, naming 25 individuals and entities, including the aforementioned parties. The Special Court (PMLA), Central District, Tis Hazari Courts, Delhi, took cognizance of the case on September 25, 2024.
Further investigations by the ED uncovered additional proceeds of crime being redirected through a related entity -- Star Track Fasteners -- along with other properties acquired by former directors, promoters, and their family members, which have since been attached.
Point of View
The ongoing investigation by the Enforcement Directorate highlights critical issues in corporate governance and financial regulation. As the situation unfolds, it is imperative that accountability is enforced to protect the integrity of our financial systems.
NationPress
27/06/2025
Frequently Asked Questions
What is the total amount of properties seized?
The Enforcement Directorate has seized properties worth Rs 28.36 crore in this case.
Which companies are involved in the fraud?
The case primarily involves Sunstar Overseas Ltd and its former directors.
How much money was fraudulently loaned?
The fraudulent loan amount exceeds Rs 950 crore.
What legal actions have been taken?
The ED has filed a Prosecution Complaint and arrested key individuals involved in the conspiracy.
What laws are being applied in this case?
The investigation is conducted under the Prevention of Money Laundering Act (PMLA), 2002.
