ED attaches ₹53.95 crore assets of Parekh Aluminex in ₹2,296 crore bank fraud
Synopsis
The ED has attached ₹53.95 crore worth of Parekh Aluminex Limited's assets, bringing total seizures in the case to ₹546 crore. The underlying fraud — involving inflated stock statements and loan diversion — cost a 17-bank consortium over ₹2,296 crore, with the JK Shah Group also implicated in channelling ₹110.54 crore of proceeds of crime.
Key Takeaways
The ED Mumbai Zone-I provisionally attached assets worth ₹53.95 crore of Parekh Aluminex Limited (PAL) under the PMLA, 2002 .
Total ED attachments in the case now stand at ₹546 crore ; earlier attachments were worth ₹493 crore .
PAL allegedly defrauded a 17-bank consortium led by Indian Overseas Bank of ₹2,296 crore by submitting inflated stock and debtor statements.
The JK Shah Group allegedly diverted ₹110.54 crore in proceeds of crime; one beneficiary received ₹70.25 crore .
A prosecution complaint has been filed before the Special Court (PMLA), Mumbai , which has taken cognisance of the offence.
The Directorate of Enforcement (ED), Mumbai Zone-I, has provisionally attached immovable and movable properties worth ₹53.95 crore belonging to Parekh Aluminex Limited (PAL) in connection with a bank fraud that inflicted a loss of over ₹2,296 crore on a consortium of 17 banks led by Indian Overseas Bank, officials said on Monday, 2 November 2026. The attachment was carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Total Attachments in the Case
With this latest action, the ED's cumulative asset attachment in the PAL bank fraud case has reached ₹546 crore. The agency had previously attached assets worth ₹493 crore in earlier phases of the investigation. A prosecution complaint — effectively a charge sheet — has been filed before the Special Court (PMLA), Mumbai, which has taken cognisance of the offence.
How the Fraud Was Carried Out
According to the ED, investigation revealed that PAL fraudulently secured loans from the bank consortium by submitting inflated stock statements and debtor accounts. Once the diversion of funds was complete, the loan accounts were declared Non-Performing Assets (NPAs) to the tune of ₹2,296 crore, the agency said. The probe was triggered by First Information Reports (FIRs) registered by the Central Bureau of Investigation (CBI), the Economic Offences Wing (EOW) Mumbai, and the EOB Mumbai against PAL and others, for alleged offences under Sections 420 and 120-B of the Indian Penal Code (IPC), 1860 and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988.
Role of JK Shah Group
The ED's investigation has also implicated the JK Shah Group, which according to the agency assisted in diverting proceeds of crime amounting to ₹110.54 crore through various entities and individuals. One identified beneficiary reportedly received and utilised ₹70.25 crore from the total proceeds of crime of ₹2,296.58 crore, the ED stated.
What Happens Next
The ED said it is continuing to examine incriminating documents recovered during search operations to identify other individuals and entities involved in the fraud. The agency's broader scrutiny of the consortium banks' exposure — spread across 17 lenders — suggests further attachments and prosecutions cannot be ruled out. With the Special Court already seized of the matter, trial proceedings are expected to advance in the coming months.
Point of View
Diverted funds, and a long trail of shell entities that allowed the proceeds to be laundered before banks could act. The ED's cumulative ₹546 crore attachment sounds significant, but it covers barely a quarter of the ₹2,296 crore loss, underscoring the structural challenge of asset recovery in large NPA cases. The JK Shah Group's alleged role as a conduit also raises questions about due diligence by the intermediary entities involved. With the Special Court now seized of the charge sheet, the real accountability test will be whether convictions — not just attachments — follow.
NationPress
2 Nov 2026
Frequently Asked Questions
What is the Parekh Aluminex Limited bank fraud case?
Parekh Aluminex Limited (PAL) allegedly defrauded a consortium of 17 banks, led by Indian Overseas Bank, of ₹2,296 crore by submitting inflated stock and debtor statements to secure loans that were subsequently diverted. The loan accounts were later declared NPAs, triggering a CBI and ED investigation.
How much has the ED attached so far in this case?
The ED has cumulatively attached assets worth ₹546 crore in the PAL bank fraud case. The latest provisional attachment of ₹53.95 crore adds to earlier seizures of ₹493 crore.
What is the role of the JK Shah Group in the case?
According to the ED, the JK Shah Group assisted in diverting proceeds of crime amounting to ₹110.54 crore through various entities and individuals. One beneficiary from this network reportedly received and utilised ₹70.25 crore of the total proceeds of crime.
Which banks were affected by the PAL fraud?
A consortium of 17 banks was affected, led by Indian Overseas Bank. The total loss to the consortium stands at over ₹2,296 crore, according to the ED.
What is the current legal status of the case?
The ED has filed a prosecution complaint (charge sheet) before the Special Court (PMLA) in Mumbai, which has taken cognisance of the offence. The agency says it continues to examine documents recovered during searches to identify additional accused.
