What are the details of the Rs 10.95 crore bank fraud?
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Synopsis
The ED has made significant strides in uncovering a Rs 10.95 crore bank fraud case in Ahmedabad, revealing illicit dealings and frozen assets. With extensive searches and critical documents collected, this investigation sheds light on the complexities of financial fraud in the banking sector.
Key Takeaways
- The ED is investigating a Rs 10.95 crore bank fraud in Ahmedabad.
- Six locations were searched, and incriminating documents were seized.
- Fixed deposits worth Rs 23 lakh have been frozen.
- The fraud involved using forged documents to secure loans.
- Gold and diamond jewelry worth Rs 3 crore was also discovered.
Ahmedabad, Oct 11 (NationPress) In connection with a Rs 10.95 crore bank fraud investigation, the ED executed searches at six different locations in Ahmedabad, uncovering incriminating documents pertaining to illicit fixed deposits and real estate, according to an official report released on Saturday.
In addition to freezing fixed deposits totaling Rs 23 lakh, the searches revealed extensive details and documents concerning properties valued in crores, as stated by the ED official.
The suspects are accused of misusing bank loans to settle personal housing loans, acquire real estate, and purchase gold, the official noted.
Under the provisions of the Prevention of Money Laundering Act, 2002, the Enforcement Directorate (ED), Ahmedabad Zonal Office, conducted these searches on Thursday and Friday relating to a fraud involving the Oriental Bank of Commerce, as detailed in the official statement.
The ED's investigation was prompted by an FIR filed by the Central Bureau of Investigation after a complaint from the bank against three companies: Shree Om Fab, Shree Baba Textile, and Shree Laxmi Fab, all proprietorships owned by Ranjitkumar J. Loonia and involved in the trade of grey cloth.
Grey cloth trading consists of the wholesale buying and selling of unprocessed, unfinished woven or knitted fabric, commonly referred to as greige fabric, which serves as a raw material for various textile products, including clothing and home textiles.
The fraud was executed under the pretense of obtaining cash credit facilities. The firms allegedly submitted forged documents to secure these credit facilities.
The approved funds were redirected to pay off housing loans for personal properties, purchase additional real estate, acquire gold and silver bullion, and make cash withdrawals. The overall fraud inflicted upon the bank amounts to approximately Rs 10.95 crore, as stated by the ED.
During their searches, the ED gathered information about gold and diamond jewelry valued at Rs 3 crore that was concealed by the accused in lockers.
The federal investigative agency also froze fixed deposits worth Rs 23 lakh under Section 17 of the PMLA, 2002.
Point of View
We remain committed to providing our audience with unbiased reporting on crucial national issues. The ongoing investigation into the Rs 10.95 crore bank fraud highlights the need for vigilance in the financial sector to protect the integrity of our banking institutions and safeguard public trust.
NationPress
12/10/2025
Frequently Asked Questions
What was the amount involved in the bank fraud?
The bank fraud involved a total of Rs 10.95 crore.
Which agency is investigating the bank fraud?
The Enforcement Directorate (ED) is conducting the investigation.
What was discovered during the searches?
The searches uncovered incriminating documents related to illicit fixed deposits and immovable properties.
What action did the ED take during the investigation?
The ED froze fixed deposits worth Rs 23 lakh and collected details about properties and other assets.
Who are the accused in this case?
The accused include three firms owned by Ranjitkumar J. Loonia involved in grey cloth trading.
