ED Attaches INR 110 Crore Assets in Lakhani Bank Fraud Case
As part of its ongoing investigation, the ED has provisionally attached five commercial plots spanning over 20 acres, a two-acre farmhouse, and a commercial flat-cum-office space in Delhi-NCR. The total estimated value of the attached properties exceeds INR 110 crore.
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The Enforcement Directorate (ED) has attached assets worth more than INR 110 crore belonging to Lakhani India Limited under the anti-money laundering law in connection with an alleged bank loan fraud case. The action comes as part of an ongoing probe into financial irregularities involving the shoe manufacturing company and its group entities.
The federal agency, in a statement on Tuesday, said its investigation under the Prevention of Money Laundering Act (PMLA) follows FIRs lodged by the Central Bureau of Investigation (CBI) in 2021 and 2023. The complaints allege that Lakhani India Limited and its associated firms—Lakhani Rubber Udyog Pvt Ltd and Lakhani Apparel Pvt Ltd—along with their promoters, P D Lakhani and Suman Lakhani, orchestrated a scheme of criminal conspiracy, cheating, and fraud, resulting in significant financial losses for multiple banks.
According to the ED, the accused entities “jointly defrauded” Indian Overseas Bank, Punjab National Bank, and Allahabad Bank by misappropriating funds and diverting them to other group companies. The agency revealed that the total fraud amounted to INR 162 crore.
The ED’s statement further detailed the modus operandi of the accused, stating, “Out of the business/capital loans and credit facilities disbursed by the complainant banks, the Lakhani group, under 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.” These transactions, the agency added, contributed to the financial distress of the banks involved.
As part of its ongoing investigation, the ED has provisionally attached five commercial plots spanning over 20 acres, a two-acre farmhouse, and a commercial flat-cum-office space in Delhi-NCR. The total estimated value of the attached properties exceeds INR 110 crore. This move is aimed at preventing further dissipation of assets as authorities continue to probe the extent of financial mismanagement within the Lakhani group.
The ED’s action marks another significant development in India’s ongoing efforts to curb money laundering and financial crimes. The probe remains active as authorities work to uncover further details regarding the alleged diversion of funds and the broader implications for the banking sector.
The Enforcement Directorate (ED) has attached assets worth more than INR 110 crore belonging to Lakhani India Limited under the anti-money laundering law in connection with an alleged bank loan fraud case. The action comes as part of an ongoing probe into financial irregularities involving the shoe manufacturing company and its group entities.
The federal agency, in a statement on Tuesday, said its investigation under the Prevention of Money Laundering Act (PMLA) follows FIRs lodged by the Central Bureau of Investigation (CBI) in 2021 and 2023. The complaints allege that Lakhani India Limited and its associated firms—Lakhani Rubber Udyog Pvt Ltd and Lakhani Apparel Pvt Ltd—along with their promoters, P D Lakhani and Suman Lakhani, orchestrated a scheme of criminal conspiracy, cheating, and fraud, resulting in significant financial losses for multiple banks.
According to the ED, the accused entities “jointly defrauded” Indian Overseas Bank, Punjab National Bank, and Allahabad Bank by misappropriating funds and diverting them to other group companies. The agency revealed that the total fraud amounted to INR 162 crore.
