BENGALURU: As part of its nationwide drive against shell companies, officials of the Enforcement Directorate on Saturday conducted raids on premises of seven such firms in Bengaluru.
Sources said the raids were conducted on investment firms that had taken huge loans from banks and also allegedly cheated individual investors. One of the firms raided by the ED was owned by Dhananjay Reddy, a businessman. The company had allegedly defaulted on repayment of Rs 70 crore loan taken from a bank, sources said.
The raids commenced in the morning and went on till late in the evening as officials were examining documents related to non-trading firms. The offices of the companies that were raided were located in Sadashivanagar, Vasanth Nagar, Banashankari and Marathahalli.
The ED, which had conducted raids on shell companies across several locations in the country, uncovered illegal operations to the tune of several hundred crores. These companies were accused of converting illegal wealth.
“ED conducts nationwide searches under FEMA & PMLA in 16 states at over 100 premises in relation to 300 shell companies,” ED stated on its official Twitter handle.