What Actions Have Been Taken in the Rs 17.5 Crore Loan Fraud Case?
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Synopsis
The recent crackdown by the ED on a Rs 17.5 crore loan fraud involving Romesh Power Products Pvt Ltd has raised critical questions about corporate accountability. With cash and incriminating documents seized during extensive searches in Jaipur, this case highlights the ongoing fight against financial misconduct.
Key Takeaways
- ED conducted extensive searches at seven locations in Jaipur.
- Rs 10 lakh in cash and incriminating documents were seized.
- The investigation is linked to a Rs 17.5 crore loan fraud case.
- RPPPL is accused of misappropriating funds from the Bank of Maharashtra.
- Actions taken under the PMLA, 2002 highlight the fight against financial misconduct.
Jaipur, Sep 11 (NationPress) In a significant move against a Rs 17.5 crore bank loan fraud, the Enforcement Directorate (ED) executed search operations at seven locations, both residential and commercial, in Jaipur. During these operations, Rs 10 lakh in cash and crucial evidence were seized, according to an official statement released on Thursday.
The raids targeted Romesh Power Products Pvt Ltd (RPPPL), a manufacturer of electric cables. The ED's Jaipur Zonal Office conducted these searches on September 9 as part of a probe into alleged fraudulent activities under the Prevention of Money Laundering Act (PMLA), 2002.
Officials reported that, aside from the cash, several incriminating documents were also confiscated. Additionally, documents indicating the diversion of Proceeds of Crime through investments in various properties and Fixed Deposits amounting to Rs 3 crore were recovered. Some bank accounts belonging to the company have been frozen as well.
The inquiry into RPPPL and its directors was initiated following an FIR lodged by the CBI, which claimed that the company and its directors secured a loan of Rs 17.5 crore from the Bank of Maharashtra, which subsequently became a non-performing asset.
According to the ED, the dues owed to the bank were allegedly misappropriated by the directors of the company for personal and related-party benefits.
Further investigations unveiled that RPPPL, involved in the production and sale of electric cables, fraudulently acquired increased credit from the Bank of Maharashtra by presenting inflated stock and sales figures, along with false certificates regarding bonus share issuance, which were verified by a chartered accountant.
Directors of the company are accused of diverting funds through unauthorized accounts, diminishing hypothecated stocks, and misrepresenting essential facts as part of a criminal conspiracy, stated the ED.
Point of View
I believe that the ED's actions highlight a crucial need for increased oversight in corporate lending practices. It is imperative that such investigations not only seek justice for financial misconduct but also serve as a deterrent to future fraud. Our commitment remains to report these developments with integrity and transparency.
NationPress
13/09/2025
Frequently Asked Questions
What is the Rs 17.5 crore loan fraud case about?
The Rs 17.5 crore loan fraud case involves Romesh Power Products Pvt Ltd, which allegedly misappropriated bank funds through inflated financial statements and false documentation.
What actions did the ED take in this case?
The ED conducted searches at seven premises in Jaipur, seizing Rs 10 lakh in cash and various incriminating documents related to the fraud.
Which bank was involved in this loan fraud?
The loan fraud involved the Bank of Maharashtra, from which the company secured a loan that later turned into a non-performing asset.
What law is being invoked in the investigation?
The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), 2002.
What were the key findings of the ED's investigation?
The investigation revealed that the company misrepresented financial data to secure increased credit, and funds were diverted for personal gains by the directors.
