ED attaches properties worth Rs 110 crore of Lakhani Group in bank fraud case

The Directorate of Enforcement (ED) has provisionally attached seven immovable properties worth Rs 110 crore under a bank fraud case related to Lakhani India Limited, Lakhani Rubber Udyog Pvt Ltd, Lakhani Apparel Pvt Ltd and other group companies.

The anti-money laundering agency had initiated the investigation on the basis of multiple FIRs registered during 2021 and 2023 by CBI Delhi and Chandigarh, under various Sections of the IPC, 1860, and Prevention of Corruption Act, 1988, against M/s Lakhani India Limited and other group companies along with promoters PD Lakhani and Suman Lakhani, related to offences of criminal conspiracy, cheating and fraud made to various banks.

ED investigations revealed that the M/s Lakhani India Limited and group companies jointly defrauded the Indian Overseas Bank, Punjab National bank and Allahabad Bank by misappropriation and diversion of funds to other group companies, conspiring, misrepresenting facts and cheating, resulting in a fraud of approximately Rs 162 crore to the complainant banks.

It was further found out that of the business/capital loans and credit facilities disbursed by the complainant banks, Lakhani group — on the directions of the promoters — made sales to related parties at a loss, repaid loans of sister concerns and made unusual interest payments to the directors.

The ED has so far detected and provisionally attached five commercial plots measuring more than 20 acres, a two-acre farm house and a commercial flat-cum-office in NCR region.