ED seizes Rs.678 crore worth Lands of Avantha Group for 'Bank Loan Fraud'

The Assets of Gautam Thapar-led Avantha Group worth more than Rs.678 crore has been attached by the Enforcement Directorate under a Rs. 2,435 crore value of loan fraud under the Act of PMLA (Prevention of Money Laundering Act).

The non-movable assets such as land were closed in Haryana, Maharashtra and Uttarakhand.

The Enforcement Directorate is based on the CBI - Central Bureau of Investigation’s first information report registered on a complaint from a group of banks directed by SBI – State Bank of India. 

It was supposed that on the month of August 19, 2019, a blamed firm, CG Power and Industrial Solutions Limited had apparently made disclosures under SEBI - Securities and Exchange Board of India’s Regulation 30 (Listing Obligations and Disclosure Requirements) Regulations, 2015 to the BSE - Bombay Stock Exchange and NSE - National Stock Exchange regarding to the respected findings that holds a prospective impact on the firm’s financial statements.

The disclosure of the firm reportedly unveiled that its assets and liabilities had been suggestively unnoticeable, giving loans for related and unrelated parties were problematic. Also the company was made a guarantor or a co-borrower to enable the processing of loans which were unfocussed immediately out of the company with no due authorization, the sources stated.

Speaking to this, the Enforcement Directorate says, “The funds paid to the Avantha Group companies remained outstanding and therefore, the ED has provisionally attached the properties of companies of Avantha Group with an estimated worth of ₹678.48 crore”.